Question

Using the general journal provided on the next page, prepare the journal entries for Coquitlam Consulting for all of the following events. Required 1) adjusting entries monthly except for amortization which is adjusted annually. .Assum . Assume that Coquitlam Consulting (CC) prepares financial statements and makes e that reversing entries are not used by Coquitlam Consulting. 2) Post the August cash transactions to the cash account using proper bookkeeping procedures ag 3 Charlie Devlin started a consulting business "Coquitlam Consulting" (CC) by investing $60,000 cash and an automobile with a fair market value of $15,000. The automobile was purchased 4 years ago for $35,000 and has been used by Mr. Devlin personally. 6 CCpurchased office supplies for use over the next few months, for $2,000. $500 was paid 13 CC completed consulting work for its firt dient and billed $25,000. One quarter is due on 6 CC collected the amount due from its client. at the time of purchase. The balance will be paid on September 5. August 26, the balance is due October 31. CC paid its employees $3,200. CC determined that $800 of supplies purchased on August 6 were still on hand. CC collected $12,000 from its 2od client for work to be done in September.

Answer 1

Journal entries in the books of Coquitlam consulting (CC)

	Particulars	Debit ($)	Credit ($)
1)	Cash Dr	60000
	Automobile Dr.	15000
	Capital Cr.		75000
	( Capital was brought in the form of Cash and automobile both)
2)	Office supplies Dr.	2000
	Cash Cr.		500
	Creditors of Office supplies Cr.		1500
	(Office supplies purchased for Cash and credit also)
3)	Debtors for services Dr.	25000
	Sale of consulting services Cr.		25000
	( Consulting services were sold on credit and bill raised)
4)	Cash Dr.	25000
	Debtors for services Cr.		25000
	( Cash received from debtors for providing consulting services)
5)	Employees costs Dr.	3200
	cash Cr.		3200
	( Paid employees costs in cash)
6)	Cash Dr.	12000
	Sale of Services Cr.		12000
	(Cash received from sale of services to second client)

No journal entry for "balance showing stock in hand i.e $ 800

of supplies purchased on august 6th were still on hand."