Question

Kaseb Nawar opens a Web consulting business called Meshreki Consultants and completes the following transactions in March. March 1 Nawar invested $170,000 cash along with $27,000 in office equipment in the company. 2 The company prepaid $6,500 cash for six months' rent for an office. 3 The company made credit purchases of office equipment for $5,000 and office supplies for $2,100. Payment is due within 10 days. 6 The company completed services for a client and immediately received $6,000 cash. 9 The company completed a $11,600 project for a client, who must pay within 30 days. 12 The company paid $7,100 cash to settle the account payable created on March 3. 19 The company paid $5,500 cash for the premium on a 12-month insurance policy. 22 The company received $4,900 cash as partial payment for the work completed on March 9. 25 The company completed work for another client for $4,610 on credit. 29 Nawar withdrew $6,700 cash from the company for personal use. 30 The company purchased $1,500 of additional office supplies on credit. 31 The company paid $600 cash for this month's utility bill. Required: Prepare general journal entries to record these transactions using the following titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Prepaid Rent; Office Equipment; Accounts Payable; K. Nawar, Capital; K. Nawar. Withdrawals; Services Revenue; and Utilities Expense. ANSWER No. Date General Journal Debit Credit

Answer 1

Journal

No	Date	Account Title and Explanation	Debit	Credit
1	March 1	Cash	170,000
		Office equipment	27,000
		K.Nawar, capital		197,000
2	March 2	Prepaid rent	6,500
		Cash		6,500
3	march 3	Office equipment	5,000
		Office supplies	2,100
		Accounts payable		7,100
4	march 6	Cash	6,000
		Service revenue		6,000
5	March 9	Accounts receivable	11,600
		Service revenue		11,600
6	March 12	Accounts payable	7,100
		Cash		7,100
7	March 19	Prepaid insurance	5,500
		Cash		5,500
8	March 22	Cash	4,900
		Accounts receivable		4,900
9	March 25	Accounts receivable	4,610
		Service revenue		4,610
10	March 29	K. Nawar, withdrawals	6,700
		Cash		6,700
11	March 30	Office supplies	1,500
		Accounts payable		1,500
12	March 31	Utility expense	600
		Cash		600