Question

Question 1 130 marks. Cecil Jameson, Attormey-at-Law, is a proprietorship owned and operated by Cecil Jameson. On July 1, 2005, Cecil Jameson, Attorney-at-Law has the following assets and liabilities: land, S 10,000: accounts payable.$ 1.530. Office space and office equipment are currently being (ented pending the construetton of an office complex on and paurchased ast year accounts receivable, S 3,200; supplies, $850; Business transactions during July are summarized as follows: @ Received cash from clients for services, $3928 Paid creditors on account, $1055 A Received cash from Cecil Jameson as an additional investment, s 3,700. ope cal, $ 3.200, Paid office rent for the month, S Purchased office supplies on account 245 Charged clients for legal services gn account, $3000. Pe Received payment from clients for previous services that w 3000 Pa- N Received in voice for paralegal services from Legal Aid Inc. for July (to be paid on August 1O, S 1,633 Paid the operating ses of the month $875 Jameson withdrew $1 cash from the business for personal use repare a balance sheet as of July 31, 2005. Cash

Answer 1

Q1)
Journal Entries:
	Accounts Titles	Debit $	Credit $
a	Cash	3928
	Service Rev		3928
	(being service rev. received)
b	Accounts Payable	1055
	Cash		1055
	(being AP paid)
c	Cash	3700
	Capital		3700
	(being capital infused)
d	Rent exp	1200
	Cash		1200
	(being rent paid)
e	Off. Supplies	245
	Accounts Payable		245
	(being supplies purchased on account)
f	Accounts Receivable	3000
	Service Rev		3000
	(being service revenue on account)
g	Cash	3000
	Accounts Receivable		3000
	(being cash received of AR)
h	Legal service exp	1635
	Accounts payable		1635
	(being legal expense bill made payable)
i	Operating exp	875
	Cash		875
	(being operating exp paid)
j	Withdrawal	1000
	Cash		1000
	(being withdrawal done)

opening Balance Sheet
Assets	Amount$	Liabilities	Amount$
Cash	1000	AP	1530
AR	3200	Capital	13520
Supplies	850	(bal. fig.)
Land	10000
Total Assets	15050	Total Liabilites	15050
T-Accounts:
Cash account
OB	1000	b	1055
a	3928	d	1200
c	3700	i	875
g	3000	j	1000
		CB	7498
AR account
OB	3200	g	3000
f	3000	CB	3200
Supplies account
OB	850	CB	1095
e	245
Land account
OB	10000
AP account
b	1055	OB	1530
CB	2355	h	1635
		e	245
Capital account
CB	17220	OB	13520
		c	3700
Service Rev account
CB	6928	a	3928
		f	3000
Rent Account
d	1200
Legal expense account
h	1635
Operating Exp Account
i	875
Withdrawal account
j	1000
INCOME STATEMENT:
Service Rev.	6928
Less: expense:
rent	1200
legal	1635
operating	875
Total Exp.	3710
Net Income	3218
BALANCE SHEET as on July 31, 05 :
ASSETS:	AMOUNT$
Cash	7498
AR	3200
Supplies	1095
Current Assets	11793
Land	10000
Total Assets	21793
LIABILITIES:	AMOUNT$
AP	2355
Current Liabilities	2355
Capital	17220
less: Withdrawal	-1000
add: Net Income	3218
Total Liabilities	21793