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 Canada, the owner, paid his child’s school fees for $2 500 and his water and electricity bill of $500 in cash withdrawn from the business.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 Canada, the owner, paid his child’s school fees for $2 500 and his water and electricity bill of $500 in cash withdrawn from the business.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 andjournal 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
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