TA services were formed on May 1, 2020. The following transactions took place during the first month. May 1 Mr. Tarek Ahmed invested $80,000 in the business, as its sole owner. May 2 Hired two employees, who will be paid a salary $1,000 per month. May 3 Paid $20000 in advance for rent of a warehouse. May 4 Purchased furniture & equipment costing $30,000. $10,000 paid in cash and $20,000 payable in next 6 months. May 5 Paid $22,000 for 1-year insurance policy. May 7 Purchase basic office supplies for $500 on account. May 8 $1,500 received in advance for which services to be performed in June. May 10 Revenue earned in cash $20000 and on account $10000. May 12 Payment to creditor for May 7 transactions. May 16 Received from debtors for May 10 transaction. May 22 Withdraw by owner $ 700. May 27 Purchase of pick-up van $ 5000 on account. Instructions: (a) Pass the Journal Entry & Post to ledger. (b) Prepare Trial Balance.
TA services were formed on May 1, 2020. The following transactions took place during the first month.
May 1 Mr. Tarek Ahmed invested $80,000 in the business, as its sole owner.
May 2 Hired two employees, who will be paid a salary $1,000 per month.
May 3 Paid $20000 in advance for rent of a warehouse.
May 4 Purchased furniture & equipment costing $30,000. $10,000 paid in cash and $20,000 payable in next 6 months.
May 5 Paid $22,000 for 1-year insurance policy.
May 7 Purchase basic office supplies for $500 on account.
May 8 $1,500 received in advance for which services to be performed in June.
May 10 Revenue earned in cash $20000 and on account $10000.
May 12 Payment to creditor for May 7 transactions.
May 16 Received from debtors for May 10 transaction.
May 22 Withdraw by owner $ 700.
May 27 Purchase of pick-up van $ 5000 on account.
Instructions:
(a) Pass the
(b) Prepare
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