Question

162-163 / 826 ounting Principles Workbook (Student... pages: The Accounting de Journal and Ledges C4 Case Study CS- 101234567 Renu Mawan has been operating her own interior design business called Mawani interiors for a couple of years. The following transactions occurred in March 2018 Mar 2 Pald cash of $2,000 for Marchs office rental Mar Renu invested 57,000 cash into the business Mar 4 Purchased equipment on account for 50.000 Mar 6 Received $2.000 cash from a client that owed the company for last month's services Mar 8 Purchased office supplies using $370 cash Mar 10 Paid 56.900 cash for a consulting invoice received and recorded last month Mar 13 Completed work for a client and the client paid $2.900 cash Mar 15 Prepaid $1.800 cash for a one-year insurance policy Mar 16 Completed work for a client, who will pay $3,200 next month Mar 20 Discovered that an error was made on the transaction recorded on Mar 4 the equipment cost 58.800, not $8.000 Mar 23 Received a 56,000 cash deposit from a client for work to be completed in the next few months Mar 29 Received utility bills for $410 to be paid next month Mar 29 Signed a notes payable to borrow $12.000 from the bank Mar 30 Renu withdrew 53,000 cash for personal use Mar 31 Paid $18.000 cash for employee salaries Required Below is the list of account names that the company uses and their respective opening account balances as at the beginning of March for each of the accounts. Identify the account category assets abilities, owner's capital owner's withdrawals revenue or expenses and input the opening account balance in the debitor credit column based on the side of its normal balance. The answers have been filed in for the accounts payable account as an example. Be sure to total both the debit and credit sides. Hints of your answers are corect, the total debit will be equal to the total credit) Account Name Balance Account Category Debit Credit Accounts Payable 6900 Lubles Accounts Receivable 6,900 5.400 2.200 11.000 12.500 0 01 2000 0 ne pense 0 0 0 0 o uspense Total 0 K к 162

Answer 1

Answer to Part a):

Account Name	Balance	A/c Category	Debit	Credit
Account Payable	6900	Liabilities		14900
Account Receivable	5400		2600
Cash	2200			4560
Equipment	11600		20400
Mawani Capital	12500			19500
Mawani Withdrawls			3000
Notes Payable				12000
Office Supplies	200		570
Prepaid Insurenace			1800
Insurance Exp.
Rent Expenses			2000
Salary Exp.			18000
Service Revenue			6000
Unearned Revenue				3200
Utility Expenses			410
Suspense Account			180	800
			54960	54960

Answer to b):

Steps in Accounting cycle that need to be done repeatedly during the accounting period before preparing trial balance:

- We made Cash A/c & General Entries for all transactions made during the year.

Answer to c)

Journal Entries, Cr. Jounal Rentall th. Tocash cash AIC Dr. To Capital March 4 Equipment All To Client ALL CAP) March 3 2000 7000 7000 8 800 8800 Mar 6 2800 Cash AIC D To Debtors.CA/R) 2800 8 Mar 370 office Supplieser 2 To cash 370 Merlof outstanding salamat 6900 6900 2900 2900 To Cash Mar 13 Client AIC TO cash 1, IS Prepaid insurance Dr. To cash 1800 1800 16 Unearned Income Dr To client 3200 3200