Question

NY Company is a merchandise company which sells computer software. New York just started its business from September 1, and during September, it had the following transactions: (2 x 30 POINTS) 1. The owner paid $1,000 in cash to the company on September 1. (A/C used: Cash & Capital) 2. 2, The company purchased equipment for $500 in cash on September 5. (A/C used: Cash & Equipment) 3. The company purchased computer software for $300 on credit on September 15. (A/C used: Merchandise Inventory & A/C Payable) 4. The company sold half of the inventory for $500 half in cash and half on credit on September 20. The cost for the inventory was $150 during September. (A/C used: Sales Revenue, Cash. A/C Receivable, Cost of Goods Sold, Merchandise Inventory) 5. The company borrowed $500 from a bank on September 25. (A/C used: Cash & Loan Payable) 6. The company paid rent expense of $100 cash on September 30 (A/C used: Rent Expense & Cash) Note: No dividend was paid during September. Journal Entries: Dr. Cr. 1 2 3 4 5 6

Answer 1

jernal entries

Cash a/c Dr 1000

To capital 1000

(Being cash recived from owner accounted)

Equipment a/c Dr 500

To cash 500

(Being equipment purchased)

Merchandise inventry a/c Dr 300

To accounts payble 300

(Being office software purchased for credit)

Cash a/c Dr 250

Account recievable a/c Dr 250

cost of good soled 150

sales revanue 350

(Being sales accounted)

Cash a/c Dr 500

To loan payble 500

(Being amount borrowed from bank)

Rent exp a/c Dr 100

To cash 100

(being rent exp accounted)

Income statement for the month ending september 2019	$
sales	500
cost of good soled	150
rent exp	100
Profit	250
Balance sheet
Asset
cash	1150
A/C recievable	250
Merchandise inventry	300
Equipment	500
Total asset	2200
Liabilities
A/c payble	300
Loan payble	500
Total liabilities	800
Owners equity
contributed capital	1000
Retained earnings	250
Total O/E	1250
Total liabilities +O/E	2050