The transaction below happened at Areej Company 1 st of October, the owner of the company invested 20,000 in the company 3 rd of October, the company converted 30,000 Note payable to ordinary shares 5 th of October, the company bought land for 25,000 on credit 6 th of October, the board of directors declared dividends 6,700 for the ordinary shareholders 7 th of October, the owner of the company withdrew 4,500 for his personal use 9 th of October, the company billed the customers 33,000 for the services provided 11 th of October, the company paid electricity 2,500 and rent 4,000 15 th of October, the company issued ordinary shares for 55,000 17 th of October, the company paid the land bought on the 5 th of October 19 th of October, the company paid 4,800 for one year insurance starting from the 1 st of October 21 st of October, the company received 44,000 for services that should be provided next month 23 rd of October, the owner of the company returned the amount withdrew in the 7 th of October 25 th of October, the company received maintenance services for their equipment for 5,500 but didnt pay the provider 27 th of October, the company sold the used delivery truck for 2,500 29 th of October, the company sold the old office furniture and billed the purchaser for 1,500 31 st of October, paid dividends for the ordinary shareholders 6,700 1 Show the impact of the above transaction on the accounting equation Post Ref Debit Credit 1 rd Oct Cash Cahier Capital 20,000 20,000 3 rd Oct Note payable ordinary shares 30,000 30,000 5 th Oct Cash bought land 25,000 25,000 6 th Oct Reserves Dividends payable 6,700 6,700 7th Oct Equity Cash 4,500 4,500 9 th Oct Cash services Revenue 33,000 33,000 11 th Oct Electricity Rent Cash 2,500 4,000 6 500 15 th Oct ordinary shares cash 55,000 55,000 17 th Oct Account payable Cash 25,000 19 th Oct Insurance Expense Cash 4,800 4,800 21 st Oct Cash Services 44,000 44,000 23 rd Oct Cash withdrew 4,500 4,500 25 th Oct services equipment Account payable 5,500 5,500 27 th Oct Cash delivery truck 2,500 2,500 29 th Oct Account Receivable furniture 1500 1500 31 st Oct Dividends Cash 6,700 6,700 Q2 Prepare the journal entries in the general ledger of the company

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Posted on Jul 09, 2024

The transaction below happened at Areej Company:

1^st of October, the owner of the company invested 20,000 in the company.
3^rd of October, the company converted 30,000 Note payable to ordinary shares.
5^th of October, the company bought land for 25,000 on credit.
6^th of October, the board of directors declared dividends 6,700 for the ordinary shareholders.
7^th of October, the owner of the company withdrew 4,500 for his personal use.
9^th of October, the company billed the customers 33,000 for the services provided.
11^th of October, the company paid electricity 2,500 and rent 4,000.
15^th of October, the company issued ordinary shares for 55,000
17^th of October, the company paid the land bought on the 5^th of October.
19^th of October, the company paid 4,800 for one-year insurance starting from the 1^st of October.
21^st of October, the company received 44,000 for services that should be provided next month.
23^rd of October, the owner of the company returned the amount withdrew in the 7^th of October.
25^th of October, the company received maintenance services for their equipment for 5,500 but didnt pay the provider.
27^th of October, the company sold the used delivery truck for 2,500.
29^th of October, the company sold the old office furniture and billed the purchaser for 1,500.
31^st of October, paid dividends for the ordinary shareholders 6,700

1. Show the impact of the above transaction on the accounting equation.

		Post Ref	Debit	Credit
1^rdOct	Cash Cahier Capital		20,000	20,000
3^rd Oct	Note payable ordinary shares		30,000	30,000
5^th Oct	Cash bought land		25,000	25,000
6^th Oct	Reserves Dividends payable		6,700	6,700
7th Oct	Equity Cash		4,500	4,500
9^th Oct	Cash. services Revenue		33,000	33,000
11^th Oct	Electricity Rent Cash		2,500 4,000	6.500
15^th Oct	ordinary shares cash=		55,000	55,000
17^th Oct	Account payable Cash		25,000
19^th Oct	Insurance Expense Cash		4,800	4,800
21^st Oct	Cash Services		44,000	44,000
23^rd Oct	Cash withdrew		4,500	4,500
25^th Oct	services equipment Account payable		5,500	5,500
27^th Oct	Cash delivery truck		2,500	2,500
29^th Oct	Account Receivable furniture		1500	1500
31^st Oct	Dividends Cash.		6,700	6,700