Question
The following operations took place at Al Ahmad Establishment for Engineering Services during the first month of 2020: - On 1/1, the corporation started its
The following operations took place at Al Ahmad Establishment for Engineering Services during the first month of 2020:
- On 1/1, the corporation started its business with a capital of 60,000 riyals, which was deposited in the foundation's fund.
- On 1/2, the rent for the month of January of 7,000 riyals was paid in cash.
- On 1/4 a car was purchased for 19,000 riyals in cash, to be used in the Foundation's business.
- On 1/5, machines and equipment were purchased for 14,000 riyals from Al Rabiah Company, on account.
- On 1/12, engineering services were provided to some clients in exchange for 15,000 riyals in cash
- On January 15, the Foundation launched an advertising campaign in a number of advertising media, at a cost of 8,000 riyals in cash.
- On January 20, the Corporation provided engineering services to a customer with an amount of 12,000 riyals, 7,000 riyals were received in cash and the rest was on the account.
- On 1/25, 14,000 riyals due to Al Rabiah Company were paid in cash.
Required:
1- Conducting journal entries in the books of the Al-Ahmad Foundation. (24 marks)
2- Posting the journal entries to the ledger, and the account balance (27 marks)
3- Preparing the trial balance with balances for the financial period ending on 1/31/2020. (10
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