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Section C: Long Question (SK2:15 marks - 1 x 15 marks) C1 - Transactions of Star Company for the month of January 2019 are presented
Section C: Long Question (SK2:15 marks - 1 x 15 marks) C1 - Transactions of Star Company for the month of January 2019 are presented below: 1. On January 1, 2019, the owner invested $75,000 cash in the business. 2. Purchased equipment for $35,000 cash. 3. Purchased supplies on account for $8,000. 4. Received a bill for $1,250 for advertising of the current month. 5. Provided $17,500 of programming services for customers. Star company received cash of $7,500 from customers, and billed the customers with the remaining amount. 6. Paid the following January expenses in cash: salaries $4,500, rent $3,000, and utilities $1,000. 7. Paid its $1,250 advertising bill in cash. 8. The owner withdrew $6,500 in cash from the business for his personal use. Required: 1- Prepare journal entries to record the above transactions. (5 marks) 2- Post to the appropriate ledger accounts. (5 marks) 3- Prepare the trial balance of Star Company on January 31, 2019
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