Question

Hermosa Señorita Nourah and Sarah, former CBA students, had saved some cash and decided to start their own business. They surveyed the market to find what business suits their budget, and what business they know the best. Since they have some experience in makeup and beauty. They decided to open a beauty salon called Hermosa Señorita. The salon will have with a monthly accounting cycle. They have started their business on Jan 1st, 2019. The following are some events that happened in 2019. 1. Jan 1. Nourah and Sarah invested 50,000 SAR in cash and 10,000 SAR in hairdryers, straighteners, and other hair equipment in exchange for 60,000 SAR ordinary shares in Hermosa Señorita. 2. Jan 1. Hermosa Señorita rented a place that cost 12,000 SAR annually to start the business. The full payment due in Dec. 31, 2019. 3. Jan 2. Hermosa Señorita paid 1200 SAR for a one-year insurance policy that will expire Dec. 31, 2019 4. Jan 3. Hermosa Señorita purchased some makeup, massage oil, and Nile polish from Sephora signing 5 months note payable in the amount of 8,000 SAR. The note required Hermosa Señorita to pay interest at an annual rate of 15% 5. Jan 7. Hermosa Señorita haired 4 ladies on the positions starting Jan 8, 2019. Each employee agreement set the salary to be 600 SAR for a six-day work week (the salon closes on Fridays), and the salaries will be paid on the eighth day of every month. 6. Jan 12. Hermosa Señorita received total of 15,000 SAR for provided services. 7. Jan 13. Hermosa Señorita received 2,500 SAR in cash from Hind for a reservation of a makeup service to be provided on Jan 17, 2019. 8. Jan 14. Hermosa Señorita provided some services for 3000 SAR to Amal (Nourah best friend) and she agreed to pay the amount due later. 9. Jan 15. Hermosa Señorita received 1000 SAR in cash for a reservation of a massage service. The service should be provided on Feb 2, 2019. 10. Jan 17. Hermosa Señorita provided the makeup service to Hind (she had a paid reservation on Jan 13) 11. Jan 30. Hermosa Señorita paid 500 SAR utilities expenses 12. Jan 30. Hermosa Señorita board of directors declared and paid 500 SAR cash dividends to shareholders. Additional information: makeup, massage oil, and Nile polish on hand 6000 SAR. The 4 ladies worked 21 days in Jan. The accountant updated the rent and insurance Depreciation is 4000 SAR

Requierments:

1-General Journal

2-Ledger accounts

Answer 1

Credit Cor Solution: In the books of Date Accounts **Doll 1190_Cash equipment T Share Capital Hermosa sonorita Debit (SAR) M 50,000 10.000 60,000 1200 al 119 Prepaid Insurance Cash on 1200 8) Lolloslio - Supplies Purchase Notes Payable 8000 lei ಕಿರಾ - u 101/12/19 Cash Service Rovenne 15000 hind 15000 s 101113119 2500 Cash Un earned Revenue 2500 lollinto 3000 Accounts Service Receivable Revenue 3000 » lollislia 1000 Cash Unearned L Revenue 1000 8 10117119 2500 Unearned Service Revenue Revenue 2500 al30l19 Exponses 50 Utilities Cash 500 Dividend Expenses 500 107 01/30/19 Sean Lalith Camcanner Cash 500

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Jan'la Ledgers Cash alche Joilla | 01 'Share Capital | 50,000 01 By Prepaid Insurance| 1200 112 P Service Revenue / 15000 1 30 By utilihan Exp. 50 | 13 Punearned revenue / 2500 1 30 By Dividend Eep 500 is ko Uneoned loupnu: 1000 :31 By Bal old 66,300 68,320 68,500 - Equipment Alc allorcaSnare Capilaal 1 10,000 01131 By Bal old 10,000 - Share Capital Color By 10lsi Beto Bal eld 60,000 01/01 By 160000 Cash 50,000 Equipment | 10,000 60.000 Jollail To cash Prepaid Insurance / 1200 1011 31 By Insurance Exp - 101/31 By Bal.eld 100 1100 1200 1200 Scarned with Can Scanner

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Dividend Expenses 101130 Do Cash 500 1031 By Bal elo y Rent Alc 2011 To Ront Payablej 1000 0131 By Bal eld 1000 - - Rent Payable 10/31/1 Bal eld 1000 1031 By Rent 1000 La Insurance Expenses 101/31/ To Prepaidans 100 joil By Bal eld 100 no loilsi Salaries Alle To. Sali lagablet 8400 olfsi By Bal eld 8400 Salories Bal eld 8400 Payable Oils By 101131 Salarion SUO Jollai To Supplier supplics exponses / 2000 01131 By Balold 2000 in ACC: Dep. Als Bal olid 4000 lo 4000 wo 161/31 T CS Solined with Canscanner