From the following information Prepare-(40marks) Journal T-Accounts Trial Balance Adjusted Journal Adjusted trial balance Income statement Statement
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Question:
From the following information Prepare-(40marks)
- Journal
- T-Accounts
- Trial Balance
- Adjusted Journal
- Adjusted trial balance
- Income statement
- Statement of changes in equity
- Balance sheet
- Closing Journal entries
for the month ending January 31st 2021 in the books of Seth &Co.
Mr. Seth started business in January 2021. Following transactions happened in the business In the month of January-
- Owner invested the following assets into the business-
Cash- $10,000
Furniture- $50,000
Supplies - $5,000
Equipment - $25,000
- Business hired 2 accountants to be joining from next month @ salary of $5500 each per month.
- Business paid the following expenses-
Phone expense $2,000
Utilities expense $3,000
Stationery expenses $9,000
Supplies Expense $5,500
- Business bought supplies on account $10,000
- Mr. Seth withdraw $8000 from business to pay for his house mortgage.
- business paid $5000 for supplies bought in (4)
- bought equipment $50,000. Half of the payment made in cash and half on account.
- received $80,000 from a client for maintenance services provided.
- paid remaining $5000 for supplies bought in (4)
- received $60,000 from client for repairing services provided
Adjustments-
- On January 1, 2021 prepaid insurance paid for three months $3600.
- Depreciation on equipment costing $50,000, salvage value $5000 and life 5 years
Related Book For
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
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