Question

Need for a project the following:

1- journal entries, ledger for one account.

August 1:        Fahed invested 500,000 in a new business called Fahed Fixes Fast Cars.

August 2:        Fahed transferred some mechanic tools worth 15,000 from his home to the business.

August 4:        The business purchased repair equipment valued at 70,000 on account from ‘Tools R Us’

August 5:        The business purchased mechanic tools for 25,000 in cash.

August 6:        The business wrote check 101 for 6,000 for rent of the mechanic shop.

August 10:      The business received its first customer and made a minor repair for a customer’s car for 5,000 in cash.

2- trail balance, OE, Income, Balance sheet.

August 11:      The business repaired a car for 14,000 on account for customer Kobe Bryant.

August 12:      The business wrote check 102 in the amount of 10,000 as partial payment for the repair equipment purchased on August 4th from ‘Tools R Us.’

August 14:      The business wrote check 103 in the amount of 4,800 for the insurance bill for the month.

August 15:      The business repaired a customer’s car for 19,200 on account for customer Derek Jeter.

August 20:      The business received a check in the amount of 8,500 as partial payment for the repairs previously made for customer Kobe Bryant on August 11th.

August 21:      The business paid the employee salaries for $12,000 in cash.

August 22:      Fahed withdrew $4,000 in cash for personal use.

August 23:      The business repaired a customer’s car for $7,800 in cash.

August 24:      The business received full payment for the repairs made for Derek Jeter on August 15th.

August 25:      The business received a check for $5,500 for the repairs previously provided on account for customer Kobe Bryant to complete the partial payment on August 20.

August 27:   The business paid in cash for $ 8,000 for repair equipment purchased on account for Tools R Us on August 12.

August 28 :   The business wrote a check 104 for $2,450 to purchase office supplies.

August 29 :    The business paid an electricity bill for $4,700 in cash.

August 31:   The business repaired a car of $ 11,000 on account for the costumer Tom Brady.

3-Adjusting Entries for “Depreciation”

- ABC company purchased an equipment at a cost of $ 170 000 with estimated useful life of 5 years, it has estimated salvage value (residual value) of $ 20 000.

Please I need it as Word file, text or excel sheet, don't post the answer as pic.

Answer 1

1)

Date	Particulars	Debit	Credit
01.08.2019	Cash A/c dr	500,000
	Fahed's Capital A/c		500,000
	(Invested to the business)
02.08.2019	Mechanic Tools	15,000
	Fahed's Capital A/c		15,000
	(took tools to the business)
04.08.2019	Equipment A/c dr	70,000
	Tools R Us a/c		70,000
	(Bought Machine equpment on credit)
05.08.2019	Mechanic Tools	25,000
	Cash A/c		25,000
	(Bought tools for cash)

Fahed' Capital Account
Date	Particulars	Amount	Date	Particulars	Amount
			01.08.2019	By cash	500,000
31-08-2019	To balance c/d	515,000	02.08.2019	Mechancal tools	15,000
		515,000			515,000

2)

Date	Particulars	Debit	Credit
06.08.2019	Rent Expense A/c	6,000
	Bank A/c		6,000
	(Paid Rent Expense by check)
10.08.2019	Cash A/c	5,000
	Service Revenue A/c		5,000
	(Received cash from service)
11.08.2019	Kob Brayat A/c	14,000
	Service Revenue A/c		14,000
	(Credit service occurred)
12.08.2019	Tool R Us A/c	10,000
	Bank A/c		10,000
	(issue check for the payment)
14.08.2019	Insurance Charges A/c	4,800
	Bank A/c		4,800
	(Issue check for the insurance)
15.08.2019	Derek Jeter A/c	19,200
	Service Revenue A/c		19,200
	(Credit Service Occurred)
20.08.2019	Bank A/c	8,500
	Kob Brayat A/c		8,500
	(Received check)
21.08.2019	Salary A/c	12,000
	Cash A/c		12,000
	(Paid Salaries)
22.08.2019	Drawings A/c	4,000
	Cash A/c		4,000
	(Withdraw for personal use)
23.08.2019	Cash A/c	7,800
	Service Revenue A/c		7,800
	(Cash Service occurred)
24.08.2019	Cash A/c	19,200
	Derek Jeter A/c		19,200
	(Cash received from debtors)
25.08.2019	Bank A/c	5,500
	Kob Brayat A/c		5,500
	(Full amount paid)
27.08.2019	Tools R Us a/c	8,000
	Cash		8,000
	(Paid check)
28.08.2019	Office Supplies A/c	2,450
	Bank A/c		2,450
	(Expense incurrd)
29.08.2019	Electricity charges A/c	4,700
	Cash A/c		4,700
	(Paid Expense)
31.08.2019	Tom Brady A/c	11,000
	Service Revenue A/c		11,000
	(Credit service occurred)

3)

The cost = 170000

Salvage Value = 20000

Carrying Value = 170000 - 20000 = 150000

yearly depreciation = 150000/5

=30000

The Journal entry Will be

Date	Particulars	Debit	Credit
31.12.2019	Depreciation A/c Dr	15,000
	Accumulated Depreciation		15,000
	(Depreciation Charged)