Question
Mr. John established his Dry Clean business The White Rose on January 1, 2017. During the month of January, the business had the following transactions:
Mr. John established his Dry Clean business The White Rose on January 1, 2017. During the month of January, the business had the following transactions:
January 1- The owner Mr. John invested $ 15,000 in his business by depositing this amount in the bank, into the bank account of the business.
January 2- The White Rose paid the rent for six months in advance. The amount paid was $ 3000.
January 5- The White Rose got a bank loan amounting to $ 10,000. That was in return for a note payable, as the loan and its interest are to be settled (paid) after 6 months.Interest rate is 6% annual.
January 6- The White Rose purchased Machinery for $ 12,000. It paid $ 8,000 cash, while the remaining amount is to be paid in March.
January 10- The White Rose purchased Supplies for $ 1500, paid $ 700 Cash, and the remaining is on account.
January 15- The White Rose signed an agreement with a small hotel called The Star to provide dry clean services for the hotels customers for one year. A down payment of $ 2500 was received in cash from the hotel.
January 31- White rose has provided services for customers for $ 4500 during the month (excluding the services for Star Hotel). It collected $ 3800 in cash, while the remaining will be settled by customers in February.
January 31- The business paid the following expenses for the month:
January 31- The owner, Mr. John, withdrew $ 1000 from the business for personal use.
In addition, the following information was available on the 31 of January:
Required:
Account numbers are as follows:
Cash 101, Accounts Receivable 105, Prepaid Rent 110, Supplies 120, Equipment 150, Accumulated Depreciation: Equipment 151, Notes payable 180, Accounts payable 182, Unearned Service Revenue 185, Interest Payable 188, Johns Capital 200, Johns Withdrawal 205, Service Revenue 220, Salaries Expense 225, Utilities Expense 227, Supplies Expense 228, Interest Expense 230, Depreciation Expense: Equipment 232, Rent Expense 233.
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