Question based on, "Mai Li invest 40,000 in cash".HALF THE WORK IS DONE ALREADY*. I have already figured out the journals... I have tried it but unable to figure out the t-accounts and trial balance sheet. Any help would be appreciated. **Problem #1**Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions. Then:**A)** Post to T accounts and prepare a trial balance. **B)** Compute the ending owner's capital.1. The owner, Mai Li, invests $40,000 in cash in starting a real estate office operating as a sole proprietorship.2. Purchased $500 of supplies on credit.3. Purchased equipment for $9,000, paying $4,000 in cash and signed a 30-day, $5,000 note payable.4. Real estate commissions billed to clients amount to $4,000.5. Paid $800 in cash for the current month’s rent.6. Paid $200 cash on account for supplies purchased in transaction 2.7. Received a bill for $600 for advertising for the current month.8. Paid $2,500 cash for office salaries and wages.9. Li withdrew $1,800 from the business for living expenses.10. Received a check for $2,500 from a client in payment on account for commissions billed in transaction 4. **Journal Entries**1. **Cash** - Debit: $40,000 - Credit: Owner's Capital $40,0002. **Supplies** - Debit: $500 - Credit: Accounts Payable $5003. **Equipment** - Debit: $9,000 - Credit: Cash $4,000 - Credit: Notes Payable $5,0004. **Accounts Receivable** - Debit: $4,000 - Credit: Service Revenue $4,0005. **Rent Expense** - Debit: $800 - Credit: Cash $8006. **Accounts Payable** - Debit: $200 - Credit: Cash $2007. **Advertising Expense** - Debit: $600 - Credit: Accounts Payable $6008. **Salaries and Wages Expense** - Debit: $2,500 - Credit: Cash $2,500

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Answered: Journalize the following business…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question based on, "Mai Li invest 40,000 in cash".

HALF THE WORK IS DONE ALREADY*.

I have already figured out the journals...

I have tried it but unable to figure out the t-accounts and trial balance sheet.

Any help would be appreciated.

**Problem #1**

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions. Then:

**A)** Post to T accounts and prepare a trial balance.
**B)** Compute the ending owner's capital.

1. The owner, Mai Li, invests $40,000 in cash in starting a real estate office operating as a sole proprietorship.
2. Purchased $500 of supplies on credit.
3. Purchased equipment for $9,000, paying $4,000 in cash and signed a 30-day, $5,000 note payable.
4. Real estate commissions billed to clients amount to $4,000.
5. Paid $800 in cash for the current month’s rent.
6. Paid $200 cash on account for supplies purchased in transaction 2.
7. Received a bill for $600 for advertising for the current month.
8. Paid $2,500 cash for office salaries and wages.
9. Li withdrew $1,800 from the business for living expenses.
10. Received a check for $2,500 from a client in payment on account for commissions billed in transaction 4.

**Journal Entries**

1. **Cash**
- Debit: $40,000
- Credit: Owner's Capital $40,000

2. **Supplies**
- Debit: $500
- Credit: Accounts Payable $500

3. **Equipment**
- Debit: $9,000
- Credit: Cash $4,000
- Credit: Notes Payable $5,000

4. **Accounts Receivable**
- Debit: $4,000
- Credit: Service Revenue $4,000

5. **Rent Expense**
- Debit: $800
- Credit: Cash $800

6. **Accounts Payable**
- Debit: $200
- Credit: Cash $200

7. **Advertising Expense**
- Debit: $600
- Credit: Accounts Payable $600

8. **Salaries and Wages Expense**
- Debit: $2,500
- Credit: Cash $2,500

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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