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1. McKinsey & Company is a world-renowned management consultant firm. Suppose the company started their operation from April, 2020. The following transactions took place during
1. McKinsey & Company is a world-renowned management consultant firm. Suppose the company started their operation from April, 2020. The following transactions took place during April. Apr 01 Invested $80,000 cash in the business. 1 Collected $33,000 from Citi for consulting services to be performed from April 1, 2020, through June 31, 2020. 2 Signed a 1-year rental agreement on a warehouse; paid $36,000 cash in advance for the month of April, May & June. 2 Signed a 3 month note payable in the amount of $5,000. 3 Hires an administrative assistant. He will be paid a salary of $6,000 per month 3 Signed a 2-year note payable in the amount of $25,000 3 Paid $3,600 cash for a one-year insurance policy 6 Purchased office supplies from 3M for $3,000 on credit. 8 Purchased equipment from Ikea for $17,000 paying $6,000 in cash and the balance on account. 10 Performed $19,000 of services for clients, collecting $10,000 cash and billing them for the remainder. 13 Withdrew $6000 cash for personal use. 17 Paid $5,000 cash to Ikea. 20 Services performed but unbilled total $3,000. 25 Pays its employees $12,300 in salary for the preceding working days. 30 Received utility bills in the amount of $10,000, to be paid next month. Requirements: 1. Prepare journal entries to record the March transactions. 2. Prepare necessary T Accounts. 3. Prepare a trial balance on April 30
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