Question

ABC Company owned by Mr.X provides consulting services. During January, the following transactions occurred:

Jan. 2 Owner started business with $50,000 cash and $20,500 worth computer.

Jan. 4 Office supplies were purchased on account for $ 4,000.

Jan. 10 ABC Company obtained loan of $20,000 from the bank.

Jan.12 Paid the utility bills for $2,750.

Jan15. Paid $3000 of Accounts payable of office supplies on Jan 4.

Jan24. Billed clients $18,300 for the advertising services.

Jan27. Received $5500 from client as payment of the services provided.

Jan30. Mr.X Witdraw $6000 of cash for personal use.

Instructions:

a. Prepare T Accounts.

b. Prepare journal entries (including explanations) for each transaction.

c.Post each transaction to the appropriate ledger Accounts.

d.Prepare a Trial balance dated January 31, 2020.