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Question B (ARI: 8 Marks) Star Company started its operations on January 1, 2019. The following transactions took place during the first month of operations:
Question B (ARI: 8 Marks) Star Company started its operations on January 1, 2019. The following transactions took place during the first month of operations: January 1: The owner invests $4,600,000 cash to start the business. January 3: Purchased office equipment for $496,000, paying $96.000 in cash and sign a note for the remaining balance. January 8: Purchased office supplies for $20,000 on credit. January 12: Paid $44,000 cash for January rent. January 16: Paid $5,400 cash for office supplies purchased on January 8. January 20: Services billed to customers amount to $96,000. January 23: Received utility bills for $10,500 for the month of January. January 25: Paid $47,400 cash as salaries for the month. January 30: Received $66,000 cash from customers in payment for services billed on January 20. January 31: The owner withdrew S15.600 from the business for personal use. Required: 1 - Prepare Journal entries to record the above transactions, 2- Post to the appropriate ledger accounts. 3- Prepare the trial balance on January 31 2019. 4. Prepare the financial statements of Star Company on January 31 2019. (2 marks) (2 marks) (2 marks) (2 marks)
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