Answer to Question #287581 in Accounting for josephtolina@gmail

Question

Dec. 1 Mr. John transferred cash from his personal account to the business to be used in

the business, Birr 150,000.

“ 1 Paid five months’ rent in advance, Birr 30,000

“ 1 Paid annual Insurance premium of Birr 7,200

“ 11 Purchased a truck for Birr 110,000 by paying Birr 60,000 Cash and giving a

notes payable for the difference.

“ 12 Purchased equipment on account, Birr 11,000

“ 13 Purchased supplies on account Birr 2400.

“ 14 Paid insurance premiums of Birr 8100

“ 15 Received cash for services completed Birr 36,000.

“ 18 Paid salaries of Birr 9000.

“ 21 Paid its liabilities for the purchase of equipment made on December 12

“ 24 Provided Service on account, Birr 52,000

“ 27 Paid utilities expense Birr 12,500.

“ 27 Paid miscellaneous expenses Birr 1,200.

“ 28 Received cash from customers on account birr 24,000

“ 30 Paid salaries to employees Birr 5,000

“ 30. The owner withdrew Birr 2,000 for personal use.

Answer 1

Solution:

The journal entries are as follows: