Mr. Qais started the business during the month of Jan 2020. The business named, Majestic Computers sells all kinds of electronic items including laptop computers, printer, scanner, desktop computers etc. During the month of Feb 2020, the following financial transactions occurred: Feb 2020 Transaction details Mr. Qais invested OMR 25,000 to start the business 1. 3 Paid rent OMR 1,000 5 Purchased office furniture for business use on credit from Fahmy Furniture worth OMR 5,000 Purchased electronic goods for cash worth OMR 10,000 7 Purchased office computer and software for business worth OMR 2,000 for cash 10 Purchased electronic goods on credit from Arabia Traders worth OMR 10,000 Sold goods for cash – OMR 3,000 Sold goods for credit to MM Mobile Shop worth OMR 20,000 Paid Fahmy Furniture OMR 5,000 for office furniture purchased on 5th Feb Paid Arabia Traders OMR 5,000 for electronic goods purchased on 10th Feb 12 15 17 18 20 Paid salaries OMR 600 22 Paid Arabia Traders OMR 4,000 for electronic goods purchased on 10th Feb | Withdrew drawings OMR 500 Received cash from MM Mobile Shop OMR 3,000 for sales mentioned on 15th Feb Paid Arabia Traders OMR 1,000 for electronic goods purchased on 10th Feb Paid Insurance expenses OMR 500 24 26 28 29 Requirements: Now that you have reviewed the case study above, respond to the following requirements on your own. Q1. Record each of the above transactions in general journal including the explantion/narration. Use the following account titles to journalize the transactions Majestic Computers: | а. Сash b. Сapital C. Rent |d. Furniture f. Purchases i. Accounts Receivables j. Salaries g. Computer & Software |k. Drawings e. Accounts Payables h. Sales I. Insurance expenses Q2. Prepare the end-of-month report to account for the incomes and expenses of Majestic Computers under Cash basis accounting. Q3. Prepare the end-of-month report to account for the incomes and expenses of Majestic Computers under Accrual basis accounting.

Mr. Qais started the business during the month of Jan 2020. The business named, Majestic Computers sells all kinds of electronic items including laptop computers, printer, scanner, desktop computers etc. During the month of Feb 2020, the following financial transactions occurred: Feb 2020 Transaction details Mr. Qais invested OMR 25,000 to start the business 1. 3 Paid rent OMR 1,000 5 Purchased office furniture for business use on credit from Fahmy Furniture worth OMR 5,000 Purchased electronic goods for cash worth OMR 10,000 7 Purchased office computer and software for business worth OMR 2,000 for cash 10 Purchased electronic goods on credit from Arabia Traders worth OMR 10,000 Sold goods for cash – OMR 3,000 Sold goods for credit to MM Mobile Shop worth OMR 20,000 Paid Fahmy Furniture OMR 5,000 for office furniture purchased on 5th Feb Paid Arabia Traders OMR 5,000 for electronic goods purchased on 10th Feb 12 15 17 18 20 Paid salaries OMR 600 22 Paid Arabia Traders OMR 4,000 for electronic goods purchased on 10th Feb | Withdrew drawings OMR 500 Received cash from MM Mobile Shop OMR 3,000 for sales mentioned on 15th Feb Paid Arabia Traders OMR 1,000 for electronic goods purchased on 10th Feb Paid Insurance expenses OMR 500 24 26 28 29 Requirements: Now that you have reviewed the case study above, respond to the following requirements on your own. Q1. Record each of the above transactions in general journal including the explantion/narration. Use the following account titles to journalize the transactions Majestic Computers: | а. Сash b. Сapital C. Rent |d. Furniture f. Purchases i. Accounts Receivables j. Salaries g. Computer & Software |k. Drawings e. Accounts Payables h. Sales I. Insurance expenses Q2. Prepare the end-of-month report to account for the incomes and expenses of Majestic Computers under Cash basis accounting. Q3. Prepare the end-of-month report to account for the incomes and expenses of Majestic Computers under Accrual basis accounting.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 80EDC

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