Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Organic Cleaning Services Limited was legally incorporated on August 1, 2022. The following transactions occurred during the first month of operations: August 2 Shareholders invested

image text in transcribedimage text in transcribedimage text in transcribed

Organic Cleaning Services Limited was legally incorporated on August 1, 2022. The following transactions occurred during the first month of operations: August 2 Shareholders invested $45,000 in cash for 45,000 common shares to start the corporation. August 3 Purchased 12 months of insurance to begin on September 3. August 5 Purchased equipment for $32,000, paying $12,000 in cash and signing a 30-day bank loan payable for the balance. August 6 Purchased $500 of supplies on account. August 12 Provide $5,000 of cleaning for a client on account. August 14 Paid $800 cash for utilities. August 15 Paid $100 cash for supplies purchased in transaction August 6. August 16 Received a bill for $1,000 for advertising for the current month. August 17 Paid $4,500 for salaries August 18 Declared $2,000 cash dividends. August 20 Received a cheque for $5,000 from a client in payment on account for cleaning billed on August 12. August 21 Paid interest of $150. August 28 Received $12,000 from clients for cleaning services. None of this amount was included in August 12 amount. August 29 Paid $1,200 for one month rent. August 30 Paid $500 income tax for the month Journalize the transactions without explanations for September 2022. 28 marks Paragraph B I U V "I = V + v O Shareholders invested $45,000 in cash for 45,000 common shares to start the corporation. Date Account Title and Explanation Debit Credit Purchased 12 months of insurance to begin on September 3. Date Account Title and Explanation Debit Credit Purchased equipment for $32,000, paying $12,000 in cash and signing a 30-day bank loan payable for the balance. Date Account Title and Explanation Debit Credit Purchased $500 of supplies on account. Date Account Title and Explanation Debit Provide $5,000 of cleaning services for a client on account. Credit ... Paid $800 cash for utilities. Date Account Title and Explanation Debit Paid $100 cash on account for supplies purchased in transaction Sept 5. Date Account Title and Explanation Debit Received a bill for $1,000 for advertising for the current month. Date Account Title and Explanation Debit Paid $4,500 cash for salaries. Date Account Title and Explanation Debit Declared 2,000 cash dividends Date Account Title and Explanation Debit Credit Credit Credit Credit Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions