Lina opened a business consultation office, Lina Consulting on 1 January 2020. During the first month of
Question:
Lina opened a business consultation office, “Lina Consulting” on 1 January 2020. During the first month of operations, the business completed the following transactions.
January 2020
1 Lina contributed RM62,000 cash into the business. The business gives capital to Lina.
2 Lina hired staff with a salary of RM2,500 to assist her. The salary will be paid by the end of the month.
2 Purchased office supplies RM500 by cash and furniture RM2,000 on account from Hassan Furnitures.
3 Purchased a laptop with the value of RM3,200 by cash.
4 Performed consultation services for Yap Enterprise. Lina Consulting charged RM1,600 for the services provided. Yap Enterprise paid RM600 by cash and the remaining balance will be paid on 25 January 2020.
7 Purchased a building with a market value of RM499,000. The business paid RM49,900 by cash, and signed a notes payable with the bank for the remaining balance. (Notes payable is an agreement to pay to the fund provider/bank) – to record as a compound transaction.
11 Provided a consultation service for Kumar Agency, on account, RM3,000.
Performed an initial business consultation service to IQ Brilliant and received RM2,150 cash.
15 Paid Hassan Furnitures RM800, by cash.
17 Received utilities bill with a total of RM1,200. The bill will be paid next month. (on 3 February)
25 Received RM500 from Yap Enterprise.
28 Paid the following expenses.
Staff salary RM2,500
Advertising RM750
Internet & telephone bill RM450
31 Lina brought in additional capital of RM2,500 to the business.
Requirements:
a) Journalize the transactions
b) Post the transactions to t account and balance off the accounts.
d) Prepare Trial Balance as at 31 January 2020.
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom