> Question#02: 2+4+4=10 a. Why journal is called the book of original entry? Why does a company keep ledger? b. Ms. Afreen is a licensed dentist. During the first month of the operation of her business, the following transactions occurred: May 5 Purchased dental supplies on account for Tk. 50.000 5 Received Tk 20,000 for a service to be performed in the next year. 20 Borrowed Tk. 100.000 from the bank on a note payable. 25 Received Tk. 20.000 in cash from the customers who have previously been billed. 31 Paid by the owner Tk. 30,000 of the amount due in transaction on May 5. Required: Journalize the transactions. C. ABC Company started business on January 1. The ledger of ABC Rental Agency on March 31 of the current year includes the selected accounts, shown below, before adjusting entries have been prepared. Debit Credit Cash Tk. 30,000 Prepaid Insurance 3,600 Supplies 2,800 Equipment 45,000 Accumulated Depreciation- Equipment Tk. 8,400 Mortgage Payable 10,000 Unearned Rent Revenue 10.200 Rent Revenue 40,000 Interest Expense 0 Salaries and Wages Expense 17,200 Capital 30.000 Total 98.600 98,600 An analysis of the accounts shows the following 1. Interest rate on mortgage is 12%. (The mortgage loan was taken on January 1) 2. One-third of the unearned rent revenue was eamed during the quarter. 3. Insurance expires at the rate of tk.200 per month. 4. A physical count has revealed that supplies of Tk 2,000 have been used. Required: Prepare the adjusting entries at March 31. The End