C Canada, the owner, invests $20 000 cash, and a building (cost $80 000, valuation $90 000) into the business. Purchase office furniture for $7 000. $2 000 was paid in cash and the remainder on account. Canada, the owner, paid his child’s school fees for $2 500 and his water and electricity bill of $500 in cash withdrawn from the business. Canada performed electrical and plumbing services for $4 000 cash and billed the clients for $6 000 on account. Canada Services ordered and received office supplies from ABC Company, on account, for $3 000. $4 000 was received from clients for services provided by Canada Services. The business paid insurance of $1 200 cash for the whole year. The accountant issued a cash check of $1 000 to ABC Company due on account. The accountant of Canada Services calculated that $2 000 worth of supplies were unused by the Business.
C Canada, the owner, invests $20 000 cash, and a building (cost $80 000, valuation $90 000) into the business. Purchase office furniture for $7 000. $2 000 was paid in cash and the remainder on account. Canada, the owner, paid his child’s school fees for $2 500 and his water and electricity bill of $500 in cash withdrawn from the business. Canada performed electrical and plumbing services for $4 000 cash and billed the clients for $6 000 on account. Canada Services ordered and received office supplies from ABC Company, on account, for $3 000. $4 000 was received from clients for services provided by Canada Services. The business paid insurance of $1 200 cash for the whole year. The accountant issued a cash check of $1 000 to ABC Company due on account. The accountant of Canada Services calculated that $2 000 worth of supplies were unused by the Business.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
100%
Required:
- Complete the
accounting equation and journal entries for the transactions given below. - Complete the following ledger accounts: Cash, Capital,
Accounts receivable , Accounts payable, Supplies, Fees earned. (You do not have to balance the accounts)
The following transactions appeared in the records of Canada Services (the business):
- C Canada, the owner, invests $20 000 cash, and a building (cost $80 000, valuation $90 000) into the business.
- Purchase office furniture for $7 000. $2 000 was paid in cash and the remainder on account.
- Canada, the owner, paid his child’s school fees for $2 500 and his water and electricity bill of $500 in cash withdrawn from the business.
- Canada performed electrical and plumbing services for $4 000 cash and billed the clients for $6 000 on account.
- Canada Services ordered and received office supplies from ABC Company, on account, for $3 000.
- $4 000 was received from clients for services provided by Canada Services.
- The business paid insurance of $1 200 cash for the whole year.
- The accountant issued a cash check of $1 000 to ABC Company due on account.
- The accountant of Canada Services calculated that $2 000 worth of supplies were unused by the Business.
PLEASE USE THE ATTACHED FORMAT FOR SOLUTION
Transcribed Image Text:Ledger Accounts:
Cash
Capital
Accounts Receivable
Accounts Payable
Supplies
Fees Earned
Transcribed Image Text:Journal entries:
No
Account
Dr
Cr
The accounting equation:
Owner's Equity
Name of Account
Assets
Liabilities
No
Name of Account
Name of Account
Increase
Decrease
Increase
Decrease
Increase
Decrease
Eg.
Cash
Fuel
$000
$000
2
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education