Mohammed is the owner of a service company that provides consulting services andcharges the clients for them. He uses a journal to record his business transactions. Beloware some of the transactions that occurred in March 2023. For each transaction, preparethe journal entry in SAR currency and explain the effect on the accounting equation.1. On March 1, Mohammed invested SAR 20,000 cash in his business to start operations.2. On March 5, the company bought office equipment worth SAR 10,000 on credit from asupplier.3. On March 9, the company provided consulting services worth SAR 5,000 for cash.4. On March 13, the company paid SAR 2,000 cash for rent and SAR 2,000 for internet billsfor the month.5. On March 21, the company received a bill for SAR 800 for office supplies used duringthe month.6. On March 29, the company paid SAR 8,000 cash in full settlement to the supplier for theoffice equipment bought on credit earlier in the month.

Journal entry recording is the first step in accounting cycle.In a journal entry at least one…

Answered: Mohammed is the owner of a service…

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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