Question

All transaction occur in Jan 1, 2018

1- Jan 1, Jana Mohammad begins his own business with a cash investment of 150,000$.

2- Jan 10, Jana Mohammad paid 60000 cash for rent expenses

3- Jan 12, Jana Mohammad purchased for 20000 equipment she paid 2000 cash and 18000 on credit

4- Jan 12, Jana Mohammad paid 4500 cash for decoration expenses

5- Jan13,jana Mohammad purchased for 1000 supplies cash

6- Jan15, Jana Mohammad paid 500 cash for advertising expenses

7- Jan 18, Jana Mohammad purchased for 15000 car she paid 3000 cash and 12000 on credit

8- Jan 20, Jana Mohammad received 500 cash from customer for rent a lake in the shop

9- Jan 20, Jana Mohammad withdraw 300 cash from the business for her personal use

10- Jan 21, Jana Mohammad Purchased a one-year fire insurance policy for 30,000

11- Jan 22, customer rent a lake in the shop on account by 500

12- Jan 23,jana Mohammad paid 2000 cash for equipment which bought on credit (on transaction 3 )

13- Jan 24, Jana Mohammad borrowed 10,000$ by signing 5%, one-year note on february1, 2019.

14- Jan 25, Jana Mohammad paid 3000 cash salaries expenses

15- Jan 27, Jana Mohammad received 200 cash from the customer whose rent a lake on account ( transaction 11)

16- Jan 31, used shop supply during the month 600

Adjusted entry

• The equipment purchased on Jan12, 2018 is being depreciated using the straight-line method over 10 years, with a salvage value of $1,800.

• Jana Mohammad shop estimates that uncollectible accounts receivable at year-end is 300

• The short-term note is dated Jan 1, 2018, and carries a 5% interest rate.

Prepare

ADJUSTED TRIAL BALANC

AND CLOSING ENTRY

AND FINANCIAL STATMANT

Answer 1