Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

VOVA is a service business established by MR. Karim from 2 years ago. MR. Karim asked your group to complete the entire accounting cycle (journal

image text in transcribed
image text in transcribed
VOVA is a service business established by MR. Karim from 2 years ago. MR. Karim asked your group to complete the entire accounting cycle (journal entries, ledger accounts, trial balance, adjusted entries, adjusted trial balance, income statement, statement of equity, balance sheet, closing entries, and finally post-closing trial balance) for the first Month of 2020 using the following accounts: Asset Accounts: Cash Accounts Receivable Prepaid Rent Prepaid insurance Office Supplies Liability Accounts: Owner's Equity Accounts Karim, Capital Accounts Payable Salaries Payable Withdrawals Rent payable Interest payable Bank loan Revenue Accounts Expense Accounts Fees revenue Salaries Expense Interest expense Rent Expense Office Supplies Expense The opening balances of Asset, liability, and Owner's Equity accounts of ROMA business at January 1, 2020 are: Karim, Capital S640,000. Cash S100,000. Land S 600,000. Accounts receivable $ 300,000 - Accounts payable $240,000- Bank loans 120,000 The following are the transactions of January, 2020: Jan 2: Collected $40,000 on an open accounts receivable 3: Purchased an additional tract of land for $80,000 cash 4: Purchased office supplies on account, $5,000 5: Provided services on account to a customer for 560,000 6- Purchased insurance policy for one-year for $12,000 7: Borrowed 548,000 from ABC Bank. 11: Paid salaries of $12,000 12: Provided services to customers for cash, 544,000 13- Purchased office supplies on account $8,000 17: Paid rent in advance for one-year $6,800 20: Paid salaries of 516,000 24: Paid S64,000 on the open accounts payable. 28: Repaid bank loans of 588,000 30- Paid interest on bank loans of $2,400. Adjusting data A- One-month insurance expired. B-Office supplies used $2,000 C-Accrued interest S800 D- One month rent expired Page 8 of 8

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

Auditing A Quality System For The Defense Industry

Authors: Charles B. Robinson

1st Edition

0873890787, 978-0873890786

More Books

Students also viewed these Accounting questions

Question

7. Identify six intercultural communication dialectics.

Answered: 1 week ago