Transaction Numbers Descriptions 1 Mr. Rajesh Smith wanted to start a business in the oil and gas industry in Alberta. Because the business is so capital intensive, he did not have enough money to start the business. As such, Mr. Smith met with a few banks. On January 1, 2020, Mr. Smith was able to secure a long-term loan from RBC bank for $10 million and started his oilfield services company, Smith Inc., as the CEO. 2 His first order of business was to buy oilfield machinery from Precision Drilling Services for $300,000. 3-6 He then purchased some office equipment: (3) a computer, (4) two tables, (5) five chairs, and (6) stationeries for $2000, $800, $1,500 and $100, respectively. 7 In February, Smith Inc. hired a few employees. In March the company provided services to its first customers for cash $50,000. 8 While providing services to customers, Mr. Smith realized the company needed another specialized equipment - so he bought one for $250,000, paid $150,000 in cash, the rest on 30 days credit. 9 The company was going very well and soon more business came in. Smith Services provided $1 million/month dollar worth of services each month from April till December 2020, with only the September services on credit to Alberta Oil since they were a valuable customer. 10 In June, Smith moved to a new office facility where the rent for the remaining six months of the year was $60,000. 11 In July, Mr. Smith took out cash $200,000 for her personal use and bought a brand new Ferrari. 12 By August he was feeling bad about withdrawing money from the business for personal use in the middle of the year and therefore deposited $1,000,000 as investment from his personal chequing account. 13 In September, Mr. Smith realised he really liked the new office building and wanted to lock in the building for next year as well. As such, he paid for the entire next year's lease to the building owner $120,000. 14 In October, Smith Inc. paid $70,000 for some of the outstanding amount for the specialized equipment. 15 In November, the company bought a delivery truck for $60,000 on credit. 16 In November, the company bought a drilling machine for $500,000. 17 In November, the company sold a part of the specialized equipment for $10,000 cash. 18 In December, the business paid for the employee salaries for $500,000. 19 At the same time, the company paid interest at 3.5% interest rate for the amount owing to RBC. Questions - For the above transations , prepare for the following: c. General Ledger d. Trial Balance.

Transaction Numbers Descriptions 1 Mr. Rajesh Smith wanted to start a business in the oil and gas industry in Alberta. Because the business is so capital intensive, he did not have enough money to start the business. As such, Mr. Smith met with a few banks. On January 1, 2020, Mr. Smith was able to secure a long-term loan from RBC bank for $10 million and started his oilfield services company, Smith Inc., as the CEO. 2 His first order of business was to buy oilfield machinery from Precision Drilling Services for $300,000. 3-6 He then purchased some office equipment: (3) a computer, (4) two tables, (5) five chairs, and (6) stationeries for $2000, $800, $1,500 and $100, respectively. 7 In February, Smith Inc. hired a few employees. In March the company provided services to its first customers for cash $50,000. 8 While providing services to customers, Mr. Smith realized the company needed another specialized equipment - so he bought one for $250,000, paid $150,000 in cash, the rest on 30 days credit. 9 The company was going very well and soon more business came in. Smith Services provided $1 million/month dollar worth of services each month from April till December 2020, with only the September services on credit to Alberta Oil since they were a valuable customer. 10 In June, Smith moved to a new office facility where the rent for the remaining six months of the year was $60,000. 11 In July, Mr. Smith took out cash $200,000 for her personal use and bought a brand new Ferrari. 12 By August he was feeling bad about withdrawing money from the business for personal use in the middle of the year and therefore deposited $1,000,000 as investment from his personal chequing account. 13 In September, Mr. Smith realised he really liked the new office building and wanted to lock in the building for next year as well. As such, he paid for the entire next year's lease to the building owner $120,000. 14 In October, Smith Inc. paid $70,000 for some of the outstanding amount for the specialized equipment. 15 In November, the company bought a delivery truck for $60,000 on credit. 16 In November, the company bought a drilling machine for $500,000. 17 In November, the company sold a part of the specialized equipment for $10,000 cash. 18 In December, the business paid for the employee salaries for $500,000. 19 At the same time, the company paid interest at 3.5% interest rate for the amount owing to RBC. Questions - For the above transations , prepare for the following: c. General Ledger d. Trial Balance.

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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Transaction Numbers	Descriptions
1	Mr. Rajesh Smith wanted to start a business in the oil and gas industry in Alberta. Because the business is so capital intensive, he did not have enough money to start the business. As such, Mr. Smith met with a few banks. On January 1, 2020, Mr. Smith was able to secure a long-term loan from RBC bank for $10 million and started his oilfield services company, Smith Inc., as the CEO.
2	His first order of business was to buy oilfield machinery from Precision Drilling Services for $300,000.
3-6	He then purchased some office equipment: (3) a computer, (4) two tables, (5) five chairs, and (6) stationeries for $2000, $800, $1,500 and $100, respectively.
7	In February, Smith Inc. hired a few employees. In March the company provided services to its first customers for cash $50,000.
8	While providing services to customers, Mr. Smith realized the company needed another specialized equipment - so he bought one for $250,000, paid $150,000 in cash, the rest on 30 days credit.
9	The company was going very well and soon more business came in. Smith Services provided $1 million/month dollar worth of services each month from April till December 2020, with only the September services on credit to Alberta Oil since they were a valuable customer.
10	In June, Smith moved to a new office facility where the rent for the remaining six months of the year was $60,000.
11	In July, Mr. Smith took out cash $200,000 for her personal use and bought a brand new Ferrari.
12	By August he was feeling bad about withdrawing money from the business for personal use in the middle of the year and therefore deposited $1,000,000 as investment from his personal chequing account.
13	In September, Mr. Smith realised he really liked the new office building and wanted to lock in the building for next year as well. As such, he paid for the entire next year's lease to the building owner $120,000.
14	In October, Smith Inc. paid $70,000 for some of the outstanding amount for the specialized equipment.
15	In November, the company bought a delivery truck for $60,000 on credit.
16	In November, the company bought a drilling machine for $500,000.
17	In November, the company sold a part of the specialized equipment for $10,000 cash.
18	In December, the business paid for the employee salaries for $500,000.
19	At the same time, the company paid interest at 3.5% interest rate for the amount owing to RBC.

Questions - For the above transations , prepare for the following:

c. General Ledger

d. Trial Balance.

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