Sarah owns a boutique that sells women's clothing and accessories. She keeps track of her business transactions using a journal.

 

1. On March 1, Sarah invested SAR 10,000 cash in her business to start operations. Prepare the journal entry

 

2. On March 5, Sarah purchased inventory for SAR 5,000 on credit from a supplier. Prepare the journal entry.

 

3. On March 10, Sarah sold SAR 3,000 worth of inventory for cash. Prepare the journal entry.

 

4. On March 15, Sarah paid SAR 1,000 cash for rent for the month. Prepare the journal entry.

 

5. On March 20, Sarah purchased office supplies for SAR 200 cash. Prepare the journal entry.

 

6. On March 25, Sarah received a bill for SAR 800 for advertising expenses incurred during the month. Prepare the journal entry

 

7. On March 31, Sarah paid SAR 4,000 cash to the supplier for the inventory purchased on credit earlier in the month. Prepare the journal entry.

 

Required: Prepare the journal entry in SAR currency for each of the transactions.

Answer rating: 100% (QA)

Here are the journal entries for each of the transactions in SAR currency 1 On March 1 Sarah invest... View the full answer