Ali company started its operation on april 1 2016 the following transaction took

Question

Ali company started its operation on april 1 2016 the following transaction took place during the first month of operations

April 1. Ali invests 900000 cash to start the business

April 4. Purchased supplies for 4400 on credit

April 7. Purchased furniture for 25000 cash

April 10. Purchased equipment for 160000 paying 50000 in cash and the remainder on credit

April 15. Services billed to customers amount to 66000

April 19. Paid 6600 cash for april rent

April 24. Received utility bills for 8400 for the month of april

April 25. recieved 46000 cash from cutomers in payment for services billed in april 15

April 26. paid 24000 cash for salaries

April 30. ali withdrew 5600 from the business for personal use.

Requires:

Prepare journal entries to record the above transaction.

Post to the appropriate ledger.

Explanation / Answer

Postings in Ledger JV for April 2016 Account Cash Date Account Title Dr $ Cr $ Date Details Dr $ Date Details Cr $ April 1. Cash    900,000 April 1. To Capital      900,000 April 7. By Furniture      25,000 Owner's Capital     900,000 April 26. to A/R        46,000 April 10. By equipment      50,000 April 19. By rent         6,600 April 4. Supplies         4,400 April 26. By salaries      24,000 Accounts Payable          4,400 April 30. By drawings         5,600 April 7. Furniture      25,000 Cash        25,000 April 10. Equipment    160,000 Account Owner's Capital Cash        50,000 Date Details Dr $ Date Details Cr $ Accounts Payable     110,000 April 1. By Cash    900,000 April 15. Services Revenue        66,000 Accounts Receivable      66,000 Account Supplies Date Details Dr $ Date Details Cr $ April 19. Rent Expenses         6,600 April 4. To A/P          4,400 Cash          6,600 April 24. Utility Expenses         8,400 Account Accounts Payable Accounts Payable          8,400 Date Details Dr $ Date Details Cr $ April 4. By Supplies         4,400 April 25. Accounts Receivable        46,000 April 10. By Equipment    110,000 Cash      46,000 April 24. By Utilities         8,400 April 26. Salaries Expense      24,000 Cash        24,000 Account Furniture April 30. Drawings         5,600 Date Details Dr $ Date Details Cr $ Cash          5,600 April 7. To cash        25,000 Account Equipment Date Details Dr $ Date Details Cr $ April 10. To Cash        50,000 To A/P      110,000 Account Accounts Receivable Date Details Dr $ Date Details Cr $ April 15. To Service rev        66,000 April 25. By cash      46,000 Account Services Revenue Date Details Dr $ Date Details Cr $ April 15. By A/R      66,000 Account Rent Expenses Date Details Dr $ Date Details Cr $ April 19. To cash          6,600 Account Utility Expenses Date Details Dr $ Date Details Cr $ April 24. To A/P          8,400 Account Salaries Expense Date Details Dr $ Date Details Cr $ April 26. To cash        24,000 Account Drawings Date Details Dr $ Date Details Cr $ April 30. To cash          5,600

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