For the past several years, John Addams has operated a part-time business from his home. As of April 1, 2016, John decided to move to rented quarters and to operate the business, which was to be known as Addams & Family Inc., on a full-time basis. Addams & Family entered into the following transactions during April: April4: The following assets were received from John Addams: cash, Rs.10,000 accounts receivable, Rs.1,500; supplies, Rs.1,250; and office equipment, Rs.7,500. • April4: Paid three months' rent on a lease rental contract, Rs.4,500 . • April4: Paid the premium on property and casualty insurance policies for the year, Rs.1,800 • April 6: Received cash from clients as an advance payment for services to be provided, Rs.3,000 • April 7: Purchased additional office furniture on account from Morrilton Company, Rs.1,800 . Aprils: Received cash from clients on account, Rs.800. . April 11: Paid cash for newspaper advertisement, Rs.120. • April 15: Recorded services provided on account for the period April 4-15, Rs.2,250 • April 15: Paid part-time receptionist for two weeks' salary, Rs.400. Page 2 of 4 Scanned with CamScanner April 18: Paid cash for supplies, Rs.750. April 22: Recorded services provided on account for April 18-22, Rs.1,100 April 25: Received cash from clients on account, Rs. 1,600 . . April27: Paid part-time receptionist for two week's salary, Rs.400. . April 29: Recorded cash from cash clients for fees earned April 25-29, Rs.2,050 . April 29: John received Rs.4,500 from the company as his salary. Required: Journalize each Transaction in a two-column journal and prepare the ledger of Cash A/C
For the past several years, John Addams has operated a part-time business from his home. As of April 1, 2016, John decided to move to rented quarters and to operate the business, which was to be known as Addams & Family Inc., on a full-time basis. Addams & Family entered into the following transactions during April: April4: The following assets were received from John Addams: cash, Rs.10,000 accounts receivable, Rs.1,500; supplies, Rs.1,250; and office equipment, Rs.7,500. • April4: Paid three months' rent on a lease rental contract, Rs.4,500 . • April4: Paid the premium on property and casualty insurance policies for the year, Rs.1,800 • April 6: Received cash from clients as an advance payment for services to be provided, Rs.3,000 • April 7: Purchased additional office furniture on account from Morrilton Company, Rs.1,800 . Aprils: Received cash from clients on account, Rs.800. . April 11: Paid cash for newspaper advertisement, Rs.120. • April 15: Recorded services provided on account for the period April 4-15, Rs.2,250 • April 15: Paid part-time receptionist for two weeks' salary, Rs.400. Page 2 of 4 Scanned with CamScanner April 18: Paid cash for supplies, Rs.750. April 22: Recorded services provided on account for April 18-22, Rs.1,100 April 25: Received cash from clients on account, Rs. 1,600 . . April27: Paid part-time receptionist for two week's salary, Rs.400. . April 29: Recorded cash from cash clients for fees earned April 25-29, Rs.2,050 . April 29: John received Rs.4,500 from the company as his salary. Required: Journalize each Transaction in a two-column journal and prepare the ledger of Cash A/C
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:For the past several years, John Addams has operated a part-time business from his home. As of
April 1, 2016, John decided to move to rented quarters and to operate the business, which was to be
known as Addams & Family Inc., on a full-time basis. Addams & Family entered into the following
transactions during April:
April4: The following assets were received from John Addams: cash, Rs.10,000 accounts
receivable, Rs.1,500; supplies, Rs.1,250; and office equipment, Rs.7,500.
• April4: Paid three months' rent on a lease rental contract, Rs.4,500
• April4: Paid the premium on property and casualty insurance policies for the year, Rs.1,800
• April 6: Received cash from clients as an advance payment for services to be provided,
Rs.3,000
• April 7: Purchased additional office furniture on account from Morrilton Company, Rs.1,800
•
Aprils: Received cash from clients on account, Rs.800.
. April 11: Paid cash for newspaper advertisement, Rs.120.
• April 15: Recorded services provided on account for the period April 4-15, Rs.2,250
• April 15: Paid part-time receptionist for two weeks' salary, Rs.400.
Page 2 of 4
Scanned with CamScanne
April 18: Paid cash for supplies, Rs.750.
April 22: Recorded services provided on account for April 18-22, Rs.1,100
April 25: Received cash from clients on account, Rs.1,600
April27: Paid part-time receptionist for two week's salary, Rs.400.
.
. April 29: Recorded cash from cash clients for fees earned April 25-29, Rs.2,050
• April 29: John received Rs.4,500 from the company as his salary.
Required: Journalize each Transaction in a two-column journal and prepare the ledger of Cash NC
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