Question
1.) Prepare an Income Statement, Owners Equity Statement, and Balance Sheet. Journal Entries for the month of July 2021 Number Account Debit ($) Credit($) 1
1.) Prepare an Income Statement, Owners Equity Statement, and Balance Sheet.
Journal Entries for the month of July 2021
| Number | Account | Debit ($) | Credit($) |
| 1 | Cash | 100,000 | |
| Mr X | 100,000 | ||
| 2 | Salary | 15,000 | |
| Cash | 15,000 | ||
| 3 | Rent | 18,000 | |
| Cash | 18,000 | ||
| 4 | Legal Expense | 4,000 | |
| Cash | 4,000 | ||
| 5 | Purchase | 45,000 | |
| Cash | 45,000 | ||
| 6 | Vehicle (Truck) | 112,000 | |
| Mr A | 112,000 | ||
| 7 | Mr X | 5,000 | |
| Cash | 5,000 | ||
| 8 | Cash | 130,000 | |
| Account Receivable | 75,000 | ||
| Sales | 205,000 | ||
| 9 | Electricity | 3,500 | |
| Cash | 3,500 | ||
| 10 | Advance Salary | 1,000 | |
| Cash | 1,000 |
Trial Balance
| Account | Debit ($) | Credit ($) |
| Capital (Mr X) | 100,000 | |
| Salary | 15,000 | |
| Salary Advance | 1,000 | |
| Legal Expense | 4,000 | |
| Purchase | 45,000 | |
| Vehicle(Truck) | 112,000 | |
| Mr A | 112,000 | |
| Drawings | 5,000 | |
| Sales | 205,000 | |
| Account Receivable | 75,000 | |
| Electricity | 3,500 | |
| Cash | 138,500 | |
| Rent | 18,000 | |
| Total | 417,000 | 417,000 |
Adjusting Trial balance
| Adjusted Trial Balance | ||
| Account | Debit | Credit |
| Capital (Mr. X) | $100,000 | |
| Salary | $15,000 | |
| Salary Advance | 1,000 | |
| Legal Expanse | 3,000 | |
| Prepaid Expense | 1,000 | |
| Purchase | 45,000 | |
| Truck | 112,000 | |
| Accumulated Depreciation - truck | 850 | |
| Mr. A | 112,000 | |
| Drawings | 5,000 | |
| Sales | 205,000 | |
| Account Receivable | 75,000 | |
| Depreciation Expense | 850 | |
| Electric | 3,500 | |
| Cash | 138,500 | |
| Rent payable | 2,000 | |
| Rent | 20,000 | |
| Total | 419,850 | 419,850 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Business Of Sport Management
Authors: John Beech, Simon Chadwick
2nd Edition
027372133X, 9780273721338
