4. (40 points) Journalize the following transactions and use the worksheet to pr
ID: 2338091 • Letter: 4
Question
4. (40 points) Journalize the following transactions and use the worksheet to prepare an Adjusted Trial Balance. a)Started event business with $30,000 of personal investment and $20,000 loan from the bank. b)Purchased office furniture by paying $20,000 in notes, of which $5,000 is due the end year and $15,000 in next 4 years c)Paid $1,200 of liability insurance for 12 months (not expensed yet). d)Purchased $2,000 worth of event supplies on account, due by the end of next month. events and generated revenues of $3,500 (cash) and $2,500 (on e)During the month, we hosted two account) respectively. f)Paid monthly rent of $2,500 for the office space.Explanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Dr Cr a) cash Dr 50,000.00 To capital 30,000.00 To Bank Loan 20,000.00 b) Office furniture Dr 20,000.00 To Note Payable 20,000.00 c) Prepaid Insurance Dr 1,200.00 To Cash 1,200.00 d) Supplies Dr 2,000.00 To Accounts payable 2,000.00 e) Cash Dr 3,500.00 Accounts receivable Dr 2,500.00 To revenues 6,000.00 f) Rent Expense Dr 2,500.00 ToCash 2,500.00 Particulars Debit Credit Cash 49,800.00 Capital 30,000.00 Bank Loan 20,000.00 Office funiture 20,000.00 Note payable 20,000.00 Prepaid Insurance 1,200.00 Supplies 2,000.00 Accounts payable 2,000.00 Account receivable 2,500.00 Revenues 6,000.00 Rent Expense 2,500.00 78,000.00 78,000.00
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