On 1 July 2018 Nicole Andreou opened a beauty parlour. The following transactions occurred during
the first month of operations (ignore GST).
Use the following account titles and numbers: Cash at Bank, 100; Accounts Receivable, 101;
Supplies, 102; Equipment, 103; Loan Payable, 200; Nicole Andreou, Capital, 300; Nicole Andreou,
Drawings, 301; Revenue, 400; Rent Expense, 500; Advertising Expense, 501; Insurance Expense, 502;
Telephone Expense, 503.
july 2 andrew invested $120000 in the business by depositing cash into a buiseness cheque account with the estpac bank.
july 2 paid $ 1800 for the first month rent
july 3 purchased equipments by an online bank transfer for $ 32000 and signed a commercial loan agreement for $ 38000
july 4 purchased supplies for $8400
july 6 paid advertising expenses of $890
july 16 recorded beauty services revenue for the first half of the month of $3250 in cash and $620 on credit.
july 20 paid insurence expenses for july of $480 using an online bank transfer.
july 23 received a $140 payament from customers who paid on credit in the first half of the month.
july 28 andreou withdraw $560 cash for personal living expenses.
july 31 recorded revenue for the second half of the month of $3680 in cash and $580 on credit
july 31 paid telephone account of $330 by electronic transfer.
Required:
a) Prepare the general journal entries to record the above transactions.
b) Post the entries from the general journal to the general ledger accounts (running balance
format) and enter the posting references in the general journal.
c) Prepare a trial balance as at 31 July 2018.
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Expert Answer
Step 1
A) Journal entries:
Step 2
B) Ledger accounts:
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