On October 1, 20xx Karim Hegazy opened Karim's Cafe. Inc. During the month, he completed the...

 

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On October 1, 20xx Karim Hegazy opened Karim's Cafe. Inc. During the month, he completed the following transactions for the company during May: 1 Began business by depositing ($100000) in a bank account in the name of the company in exchange for(10000 shares of 10 par value common stock. Paid the rent for a store for the current month, $600) Paid the premium on alone-year insurance policy for $1200 2 Purchased Coffee equipment from Sherif Company, ($4200) Terms were $600 down payment and 300 per month for one year First payment is due Nov 1 8Paid cash for an advertisement in a local newspaper, $6000. 15 Received cash service revenue for the first half of the month for services ($4000) 21 Paid Sherif Company on account, $300. 31 Received cash revenue for the second half of October for service, $975. 31 Declared and paid a cash dividend, $ 300. Required for October: 1- Prepare entries in journal form to record the October transactions. 2- Open the following accounts: Cash, Prepaid Insurance, Coffee Equipment, Accounts Payable, Common Stock (Capital account), Retained earnings, Dividends, service revenue, rent expense, Advertising Expense, Insurance Expense. Post the October journal entries to the ledger accounts 3- Prepare a trial balance from posted ledger accounts. (7 marks On October 1, 20xx Karim Hegazy opened Karim's Cafe. Inc. During the month, he completed the following transactions for the company during May: 1 Began business by depositing ($100000) in a bank account in the name of the company in exchange for(10000 shares of 10 par value common stock. Paid the rent for a store for the current month, $600) Paid the premium on alone-year insurance policy for $1200 2 Purchased Coffee equipment from Sherif Company, ($4200) Terms were $600 down payment and 300 per month for one year First payment is due Nov 1 8Paid cash for an advertisement in a local newspaper, $6000. 15 Received cash service revenue for the first half of the month for services ($4000) 21 Paid Sherif Company on account, $300. 31 Received cash revenue for the second half of October for service, $975. 31 Declared and paid a cash dividend, $ 300. Required for October: 1- Prepare entries in journal form to record the October transactions. 2- Open the following accounts: Cash, Prepaid Insurance, Coffee Equipment, Accounts Payable, Common Stock (Capital account), Retained earnings, Dividends, service revenue, rent expense, Advertising Expense, Insurance Expense. Post the October journal entries to the ledger accounts 3- Prepare a trial balance from posted ledger accounts. (7 marks

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