(Answered)-Question One: On January 1, 2016, Mubarak starts a new computer

kindly, check the attached file, it has 2 questions needed to be done

Question One:

 

On January 1, 2016, Mubarak starts a new computer programming centre which he names

 

Microsoft. During the first month of operations, the following transactions occurred:

 

1- Invested $275,000 in cash in the business.

 

2- Purchased equipment for 95,000, paying $35,000 in cash and signing a note payable for the

 

remaining balance.

 

3- Paid $3,500 cash for January rent.

 

4- Received a bill from Sky News for advertising amounted to $850.

 

5- Provided programming services for $25,250 cash.

 

6- Paid $5,525 cash for January utilities.

 

7- Paid $500 cash for salaries.

 

8- Mubarak made an additional investment in the business amounted to $115,500.

 

9- Mubarak withdrew $2,500 cash for personal use.

 

10- Purchased supplies on account for $50,000.

 

Required:

 

a. Prepare journal entries for the above transactions.

 

b. Post to the ledger.

 

c. Prepare the trial balance.

 

 

Question Two:

 

Sky Advertising Agency

 

Trial Balance

 

April 30, 2016

 

Cash

 

Supplies

 

Prepaid Insurance

 

Equipment

 

Notes Payable

 

Accounts Payable

 

Unearned Service Revenue

 

Owner?s Capital

 

Owner?s Drawing

 

Service Revenue

 

Salaries Expense

 

Rent Expense

 

Utilities Expense

 

Total

 

 

Debit

 

$38,000

 

6,250

 

1,500

 

12,500

 

 

Credit

 

 

$12,500

 

6,250

 

3,000

 

25,000

 

1,250

 

25,000

 

10,000

 

1,250

 

1,000

 

71,750

 

 

71,750

 

 

Other information:

 

1. Supplies of $2,000 are used on April.

 

2. Depreciation for the month $500.

 

3. Accrued salaries on April 30 are $4,000.

 

4. Services performed but not recorded on April 30 are $1,000.

 

5. Expired insurance for April are $250.

 

6. Services related to unearned service revenue in April worth $1,500 were provided.

 

Required:

 

a. Prepare the adjusting entries on April 30, 2016.

 

b. Prepare the adjusted trial balance.

 

c. Prepare the financial statements on April 30, 2016.

 

 



 

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DATE ANSWERED

Oct 07, 2020

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