Question 1

Required:

• Complete the accounting equation and journal entries for the transactions given below.
• Complete the following ledger accounts: Cash, Capital, Accounts receivable, Accounts payable, Supplies, Fees earned. (You do not have to balance the accounts)

The following transactions appeared in the records of Canada Services (the business):

1.C Canada, the owner, invests $20 000 cash, and a building (cost $80 000, valuation $90 000) into the business.

2.Purchase office furniture for $7 000. $2 000 was paid in cash and the remainder on account.

3.C. Canada, the owner, paid his child's school fees for $2 500 and his water and electricity bill of $500 in cash withdrawn from the business.

4.Canada performed electrical and plumbing services for $4 000 cash and billed the clients for $6 000 on account.

5.Canada Services ordered and received office supplies from ABC Company, on account, for $3 000.

6.$4 000 was received from clients for services provided by Canada Services.

7.The business paid insurance of $1 200 cash for the whole year.

8.The accountant issued a cash check of $1 000 to ABC Company due on account.

9.The accountant of Canada Services calculated that $2 000 worth of supplies were unused by the Business.