BAC2614 Lecture Exercise 1 1. Excess Computer owns a computer repair service which started its' business operation on 1 January 2009. At the end of accounting year of 2015, he had the following trial balance. Cash Accounts Receivable Repair Parts Inventory Prepaid Rent Shop Equipment Accumulated depreciation Accounts Payable Capital Stock Retained Earnings (1/1/01) EXCESS COMPUTER Trial Balance as at December 31, 2015 Debit Credit 12,100 18,000 13,000 5,000 21,000 2.100 21.000 40,000 6,000 69,100 69,100 Summarized transactions for January 2016 were as follows: 1 Owner invested another RM20,000 into the business. 3 Purchased repair parts of RM3,500 on account. 10 Collected RM8,000 of account receivables. 12 Open up bank account, RM10,000 cash. 15 Purchased tools of RM5,000; paying cash RM1,000 and the balance will be paid in four monthly installments starting from next month. 17 Paid account payables by check of RM2,000. 18 Rent for the month of January was recorded for RM1,000. 20 Paid utilities bill online for RM500. 28 Paid salary for RM2,000 31 Sales for the month of January totaled RM25,000, and cash receipts amounted to RM18,750 Required 2. Prepare journal entries to record each of January transactions b. Post the journal entries to the accounts in the 3-column ledger or T-accounts c. Prepare a Trial Balance as of January 31, 2016