On 1 August 2019 Nicole Andrew opened a beauty parlour. The following transactions occurred during the first month of operations (ignore GST). Aug 1 Andrew invested $150,000 in the business by depositing cash into a business cheque account with the Northpac Bank 2 Purchased equipment which has a total cost $65,000. $30,000 was paid by an online bank transfer and the remaining amount was paid by signing a commercial bank loan. 3 Paid $2,000 for the first month’s rent 4 Purchased supplies for $9,400 5 Paid advertising expense of $990 using an online bank transfer 16 Recorded beauty services revenue for the first half of the month of $3350 in cash and &630 on credit 20 Received a $180 payment from customers who paid on credit in the first half of the month 28 Andrew withdrew $660 cash for personal living expenses 30 Recorded revenue for the second half of the month $3690 in cash and $600 on credit 31 Paid electricity bill of $520 by electronic transfer Required Prepare the general journal entries to record the above transactions in the month of August 2019.
On 1 August 2019 Nicole Andrew opened a beauty parlour. The following transactions occurred during the first month of operations (ignore GST). Aug 1 Andrew invested $150,000 in the business by depositing cash into a business cheque account with the Northpac Bank 2 Purchased equipment which has a total cost $65,000. $30,000 was paid by an online bank transfer and the remaining amount was paid by signing a commercial bank loan. 3 Paid $2,000 for the first month’s rent 4 Purchased supplies for $9,400 5 Paid advertising expense of $990 using an online bank transfer 16 Recorded beauty services revenue for the first half of the month of $3350 in cash and &630 on credit 20 Received a $180 payment from customers who paid on credit in the first half of the month 28 Andrew withdrew $660 cash for personal living expenses 30 Recorded revenue for the second half of the month $3690 in cash and $600 on credit 31 Paid electricity bill of $520 by electronic transfer Required Prepare the general journal entries to record the above transactions in the month of August 2019.
On 1 August 2019 Nicole Andrew opened a beauty parlour. The following transactions occurred during the first month of operations (ignore GST). Aug 1 Andrew invested $150,000 in the business by depositing cash into a business cheque account with the Northpac Bank 2 Purchased equipment which has a total cost $65,000. $30,000 was paid by an online bank transfer and the remaining amount was paid by signing a commercial bank loan. 3 Paid $2,000 for the first month’s rent 4 Purchased supplies for $9,400 5 Paid advertising expense of $990 using an online bank transfer 16 Recorded beauty services revenue for the first half of the month of $3350 in cash and &630 on credit 20 Received a $180 payment from customers who paid on credit in the first half of the month 28 Andrew withdrew $660 cash for personal living expenses 30 Recorded revenue for the second half of the month $3690 in cash and $600 on credit 31 Paid electricity bill of $520 by electronic transfer Required Prepare the general journal entries to record the above transactions in the month of August 2019.
Questions 2 Recording transactions in Journal entries
On 1 August 2019 Nicole Andrew opened a beauty parlour. The following transactions occurred during the first month of operations (ignore GST).
Aug
1
Andrew invested $150,000 in the business by depositing cash into a business
cheque account with the Northpac Bank
2
Purchased equipment which has a total cost $65,000. $30,000 was paid by an
online bank transfer and the remaining amount was paid by signing a
commercial bank loan.
3
Paid $2,000 for the first month’s rent
4
Purchased supplies for $9,400
5
Paid advertising expense of $990 using an online bank transfer
16
Recorded beauty services revenue for the first half of the month of $3350 in
cash and &630 on credit
20
Received a $180 payment from customers who paid on credit in the first half
of the month
28
Andrew withdrew $660 cash for personal living expenses
30
Recorded revenue for the second half of the month $3690 in cash and $600
on credit
31
Paid electricity bill of $520 by electronic transfer
Required
Prepare the general journal entries to record the above transactions in the month of August 2019.
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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