Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required: Preparing the necessary journal entries in the general journal of previous financial transactions On 1/1/2023, Jassim started his commercial business with a capital of

Required: Preparing the necessary journal entries in the general journal of previous financial transactions

On 1/1/2023, Jassim started his commercial business with a capital of $3,735,000 distributed over the following assets:

1500,000 cash, 700,000 cars, 350,000 goods, 1,185,000 bank,

If you know that the following operations took place during January 2023:

1. On 1/3 he bought a building for $950,000 by check, and the costs of registering it amounted to $5200 and the expenses of preparing it for use amounted to $43000, which I paid in cash.

2. On 9/1 he sold his goods on account to Mahmoud for $280,000.

3. On 1/10, he bought goods from Daoud for $324,000, he paid half of them in cash, and wrote the rest as a promissory note due after two months. He also paid the costs of transporting the purchased goods, amounting to $1,800.

4. On 1/12 he sold his goods to Al-Tafa'il stores for the amount of $198,000 in cash, of which $65,000 was deposited in the bank.

5. On 1/15, he sold the most valuable car for $485,000 in cash, knowing that its book value was $514,000, and he withdrew a quarter of the amount for his personal use.

6. On 21/1, Mahmoud paid $95,000 in cash.

7. On 24/1 he bought goods from Sultan for $186,000 on account with a 10% commercial discount.

8. On 25/1, goods worth $12,100 were returned to Sultan because they did not meet the agreed specifications.

9. On 30/1, pay the following expenses in cash: $2800 water and electricity expenses, $21000 salaries and wages.

THE QUESTION: Preparing the necessary journal entries in the general journal of previous financial transactions

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

23rd Edition

978-0324662962

More Books

Students also viewed these Accounting questions