Mohammed is the owner of a service company that provides consulting services and charges the clients for them. He uses a journal to record his business transactions. Below are some of the transactions that occurred in March 2023. For each transaction, prepare the 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 a supplier. 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 bills for the month. 5. On March 21, the company received a bill for SAR 800 for office supplies used during the month. 6. On March 29, the company paid SAR 8,000 cash in full settlement to the supplier for the office equipment bought on credit earlier in the month.
Mohammed is the owner of a service company that provides consulting services and charges the clients for them. He uses a journal to record his business transactions. Below are some of the transactions that occurred in March 2023. For each transaction, prepare the 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 a supplier. 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 bills for the month. 5. On March 21, the company received a bill for SAR 800 for office supplies used during the month. 6. On March 29, the company paid SAR 8,000 cash in full settlement to the supplier for the office equipment bought on credit earlier in the month.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Mohammed is the owner of a service company that provides consulting services and
charges the clients for them. He uses a journal to record his business transactions. Below
are some of the transactions that occurred in March 2023. For each transaction, prepare
the 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 a
supplier.
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 bills
for the month.
5. On March 21, the company received a bill for SAR 800 for office supplies used during
the month.
6. On March 29, the company paid SAR 8,000 cash in full settlement to the supplier for the
office equipment bought on credit earlier in the month.
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