Ahmed started his (WM) company on April, 2, 2021. The company had the following transactions during its first month of operations:

2/ Ahmed invested $70,000 cash.

3/ paid office rent of $3,000.

6/ purchased supplies for $800 cash. The supplies will last for 3 months months.

8/ purchased office equipment for $4,000 on account. The entire amount is due May, 10

18/ purchased a company vehicle for $20,000. He paid $5,000 cash and issued a note payable for the remaining amount owed.

20/ billed clients $8,000 on account for services performed.

26/ withdrew $500 for personal use

27/ paid April utilities of $200.

30/ Received $2,000 from clients billed on April 20.

31/ Recorded and paid salary expense of $5,000.

Required:

a) Prepare journal entries, including explanations.

April	Transaction
2	Cash 50000 Owner Capital 50000 (capital invested in business)
3	Rent expense 3000 Cash 3000 (office rent paid in cash)
6	Supplies 800 Cash 800 (paid cash for supplies )
8	Office equipment 4000 Accounts Payable 4000 (purchased equipment on account)
18	Vehicle 20000 Cash 5000 Notes Payable 15000 (purchased vehicle for cash and on account)
20	Accounts receivables 8000 Services revenues 8000 (provided services on account)
26	Drawings 500 Cash 500 (drawing in cash)
27	Utilities expense 200 Cash 200 (paid utilities )
30	Cash 2000 Accounts receivables 2000 (received cash for due amount on April 20)
31	Salaries expense 5000 Cash 5000 (salaries paid in cash)

b) Post each entry to the appropriate ledger accounts (use the T account format).

cash
2/ 50000 30/ 2000	3/ 3000 6/ 800 18 /5000 26/ 500 27/ 200 31/ 5000

Rent expense
3/ 3000

Notes pay.
	18/ 15000

Vehicle
18/ 20000

Drawings
26/ 500

Capital
	2/ 5000

Supplies
6/ 800

Office equipment
8/ 4000

Accounts pay.
	8/ 4000

Accounts rec.
20/ 8000	30/ 2000

Sales rev.
	20/ 8000

Utilities exp.
27/ 200

Salaries exp.
31/ 5000

c) Prepare a trial balance.

Accounts	Dr	Cr
Cash	37500
Accounts receivables	6000
Supplies	800
Vehicle	20000
Equipment	4000
Accounts payable		4000
Notes payable		15000
Capital		50000
Drawing	500
Service revenue		8000
Salary expense	5000
Rent expense	3000
Utility expense	200
	77000	77000