Question
Question: Northern Investment Ltd involved the following transactions during September 2018, the first month of its operation: Date Transactions September 1 Started a financial planning
Question: Northern Investment Ltd involved the following transactions during September 2018, the first month of its operation:
Date | Transactions |
September 1 | Started a financial planning services company by investing 150,000 cash and office equipment of 50,000. |
2 | Purchased 12,000 of office equipment by cash. |
3 | Purchased 3,000 of office supplies on credit. |
4 | Completed service for a client and received a payment of 9,000 cash. |
8 | Completed service for BT Ltd on credit amounted to 17,000. |
10 | Paid the supplier for the office supplies purchased on 3 September. |
14 | Paid 9,600 being the annual premium for an insurance policy. |
18 | Received payment in full from BT Ltd for the service completed on 8 September. |
27 | Owner withdrew 6,500 cash from the company for personal expenses. |
30 | Paid 1,750 cash for the utility bills in September. |
31 | Received 20,000 cash from a client for a financial service to be rendered next year. |
- Prepare journal entries to record all of the above transactions.
- Post the journal entries to the relevant three column ledgers.
- Prepare the trial balance as at 30 September 2018
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