Faisal Isa is the owner of Faisal Delivery Services located in Hidd. Required: Prepare the journal entries on the following transactions that occurred during the month of February 2021 using the given chart of accounts. Cash Prepaid rent Delivery revenues Accounts receivable Accounts payable Salaries expense Delivery vehicle Notes payable Maintenance expense Office equipment Unearned delivery revenue Utilities expense Accounts receivable Faisal, capital Interest expense Office supplies Faisal, withdrawals Advertising expense 21 1 Feb. Faisal invested BD3,000 cash and his office equipment having a fair market value of BD450. (2.5 Points) DEBIT: CASH 3,000, Office equipment 450; CREDIT: Faisal capital 3,450 DEBIT: CASH 3,000; CREDIT: Faisal capital 3,000 DEBIT: CASH 3,450, CREDIT: Faisal capital 3,450 DEBIT: CASH 450, Office equipment 3,000; CREDIT: Faisal capital 3,450 22 2 Feb. Bought two (2) used delivery vans from Riffa Cars at BD4,750 each. He paid BD5,700 as a down payment and issued a promissory note for the balance. (2.5 Points) DEBIT: Delivery vehicles 9,500; CREDIT: Cash 5,700, Accounts payable 3,800 DEBIT: Delivery vehicles 9,500; CREDIT: Cash 5,700, Notes payable 3,800 DEBIT: Delivery vehicles 9,500; CREDIT: Cash 3,800, Notes payable 5,700 DEBIT: Delivery vehicles 9,500; CREDIT: Cash 9,500 23 Received BD725 cash for delivery services rendered. 3 Feb. (2.5 Points) DEBIT: Accounts receivable 725; CREDIT: Unearned Delivery revenues 725 DEBIT: Cash 725; CREDIT: Delivery revenues 725 DEBIT: Cash 725; CREDIT: Unearned Delivery revenues 725 DEBIT: Accounts receivable 725; CREDIT: Delivery revenues 725 24 5 Feb. Received bill from GDN News advertising BD845. (2.5 Points) DEBIT: Advertising expense 845; CREDIT: Cash 845 DEBIT: Advertising expense 845; CREDIT: Accounts payable 845 DEBIT: Advertising expense 845; CREDIT: Prepaid advertising 845 DEBIT: Advertising expense 854; CREDIT: Accounts payable 854 25 15 Feb. Billed Bahrain Surgical Supply for delivery service provided, BD1,296. (2.5 Points) DEBIT: Cash 1,296; CREDIT: Delivery revenues 1,296 DEBIT: Cash 1,296; CREDIT: Unearned Delivery revenues 1,296 DEBIT: Accounts receivable 1,296; CREDIT: Unearned Delivery revenues 1,296 DEBIT: Accounts receivable 1,296; CREDIT: Delivery revenues 1,296 26 16 Feb. Received and paid telephone bill BD88. (2.5 Points) DEBIT: Utilities expense 88; CREDIT: Accounts payable 88 DEBIT: Utilities expense 88; CREDIT: Utilities payable 88 DEBIT: Utilities expense 88; CREDIT: Cash 88 DEBIT: Telephone expense 88; CREDIT: Utilities payable 88 27 20 Feb. Performed delivery service to Riffa Kitchen for BD1,350, receiving BD850 cash and the balance payable in 30 days. (2.5 Points) DEBIT: Cash 1350 CREDIT: Delivery revenues 1,350 DEBIT: Cash 850, Accounts receivable 500; CREDIT: Unearned Delivery revenues 1,350 DEBIT: Cash 850, Accounts receivable 500; CREDIT: Delivery revenues 1,350 DEBIT: Cash 1350 CREDIT: Unearned Delivery revenues 1,350 28 28 Feb. Faisal withdrew BD400 to pay for his flat. U (2.5 Points) DEBIT: Cash 400; CREDIT: Faisal withdrawals 400 DEBIT: Rent expense 400; CREDIT: Cash 400 DEBIT: Faisal capital 400; CREDIT: Faisal withdrawals 400 DEBIT: Faisal, withdrawals 400; CREDIT: Cash 400 29 Describe the rule of debits and credits as regards the recording of revenues in the journal. In (5 Points)
