Nov.1 Mimi transferred 56,000 out of a personal savings bank account to a checking accounts her in the name of the business.

1. Rented office space and paid cash for the month’s rent of 800

3. Purchased electrical equipment for 14,000 by paying 3,200 and agreeing to pay the remaining balance in six months

5. Purchased office supplies by paying 900 cash.

6. Completed electrical work and received 1,000 cash for doing the work.

11. Purchased 3,800 of office equipment on credit

15. Completed electrical work on credit in the amount of 4,000

20. Paid for the office equipment purchased on Nov.9

24. Billed a customer for electrical work completed 600

28. Received 4,000 for the work completed on Nov.15

30. Paid salary of employees 1,200

30. Paid the monthly utilities bill 440

30. Withdrew 700 from the business for personal use

Required:

1. Prepare journal entries.

2. Post journal entries to appropriate ledger accounts (use T-Account).

3. Prepare trial balance.

4. Prepare an income statement, a statement of owner’s equity, and a balance sheet

Answer rating: 100% (QA)

Solution Total Balance in Individual Savings Bank Account 56000 1Payment for rented office space ... View the full answer