June 1 Shareholders (Ahmed and Sara) invested $500,000 each in the business.

June 1 Paid 5000 rent in advance for the month of June.

June 2 Purchased a delivery truck from Honda Al Ain for $50,000 (invoice no: 101) on account

June 3 Purchased supplies for $1000 (invoice number 102) on cash from LULU company

June 4 purchased inventory of 100 mobile phones on account from Samsung UAE (product code: mob 01; invoice number 103) for $1000 each

June 4 Purchased inventory of 20 TVs on account from Samsung UAE (product code: tv 01; invoice number 104) for $2000 each

June 5 Sold 10 units of mobile phone to ABC retailer on cash (product code: mob 01; invoice no: 1001) for $1200 each

June 7 Sold 5 units of TV to Synergy retailer on account for 10 days (product code: TV 01; invoice no 2001) for $1200 each

June 17 Received in full for units sold to Synergy retailer on June 7

June 17 Paid Samsung UAE $100,000 for June 4 purchases

June 30 Paid salary of $2000 to employee Malik from ADIB bank

Other data as on 31 June 2021

1. Depreciation rate is 20% for the delivery truck
2. Supplies on hand $600
3. Salary of $1000 for the month of June not paid to employee Salem

 

 

 

 

Instructions

1. Create new company
2. Journalize the above transactions                                                                 
3. Journalize the depreciation & adjustment journals.                                       )
4. Edit and save the following reports as the end of June 30:                          
   • All transactions (General Ledger).                                                                                         
   • Trial Balance.
   • Income statement and balance sheet.
   • Customers statement (transactions)
   • Supplier statement (transactions)
   • Inventory Reports (Quantity and profit margin).

Answer rating: 100% (QA)

Journal entries Description Cash ac TO common stock capital ac ahmed Date Debit Credit 500000 Jun01 ... View the full answer