Question

Part 2

The following are Amena Consulting June 2007 transactions:

June 1 Amena Ali, owner, invested $13,325 cash into the business

June 2 Purchased office supplies for $475 cash

June 5 Purchased $6,235 of office equipment on credit

June 7 Received $2000 cash as fees for services provided to a customer

June 10 Paid $6,235 cash to settle the payable for the office equipment purchased on June 5

June 12 Billed a customer $3,300 as fees for services provided

June 14 Paid $775 cash for monthly rent

June 20 Collected $2,300 cash toward the account receivable created above

June 30 Amena Ali withdrew $800 cash for personal use

1. Prepare the necessary journal entries with narration to record the transaction for June.

2.

Open T-accounts using the following account/account numbers

Cash 101

Accounts Receivable 102

Office Supplies 103

Office Equipment 104

Account Payable 131

Amena Ali, Capital 141

Amena Ali, Withdrawals 151

Fees earned 161

Rent expense 171

3. Post the journal entries to their respective “T” accounts according to the list provided in requirement 2 and balance each account

Answer 1

Journal Entries

Date		Debit ($)	Credit ($)
June 1	Cash A/c (101) (Dr)	13325
	To Amena Ali, Capital A/c (141) (Cr)		13325
	(Owner Invested $13325 into the business)
June 2	Office Supplies A/c(103) (Dr)	475
	To Cash(101) (Cr)		475
	(Office supplies purchased for $475)
June 5	Office Equipment A/c (104)(Dr)	6235
	To Account Payable A/c (131)(Cr)		6235
	(Office equipment purchased on credit)
June 7	Cash A/c (101)(Dr)	2000
	To fees earned A/c (161) (Cr)		2000
	(Cash received for services performed)
June 7	Accounts Payable A/c (131) (Dr)	6235
	To Cash A/c (101) (Cr)		6235
	(Paid $6,235 cash to settle the payable for the office equipment purchased on June 5)
June 12	Accounts Receivable A/c (102) (Dr)	3300
	To fees earned A/c (161)(Cr)		3300
	(Billed a customer $3,300 as fees for services provided)
June 14	Rent Expense A/c (171)(Dr)	775
	To Cash A/c(101) (Cr)		775
	(Paid $775 cash for monthly rent)
June 20	Cash A/c (101) (Dr)	2300
	To Accounts Receivable A/c (102) (Cr)		2300
	(Collected $2,300 cash toward the account receivable created on June 12)
June 30	Amena Ali, Withdrawals A/c (151) (Dr)	800
	To Cash A/c (101)(Cr)		800
	(Amena Ali withdrew $800 cash for personal use)

T-Accounts

Dr	Cash A/c(101)				Cr
Date	Particulars	Amt ($)	Date	Particulars	Amt ($)
Jun-01	To Amena Ali, Capital A/c (141)	13325	Jun-02	By Office Supplies A/c(103)	475
Jun-07	To fees earned A/c (161)	2000	Jun-07	By Accounts Payable A/c (131	6235
Jun-20	To Accounts Receivable A/c (102)	2300	Jun-14	By Rent Expense A/c (171)	775
			Jun-30	By Amena Ali, Withdrawals A/c (151)	800
			Jun-30	By Balance C/d	9340
		17625			17625
Jul-01	To Balance B/d	9340
Dr	Accounts Receivable A/c(102)				Cr
Date	Particulars	Amt ($)	Date	Particulars	Amt ($)
Jun-12	To fees earned A/c (161)	3300	Jun-20	By Cash A/c (101)	2300
			Jun-30	By balance C/d	1000
		3300			3300
Jul-01	To Balance B/d	1000
Dr	Office Supplies A/c (103)				Cr
Date	Particulars	Amt ($)	Date	Particulars	Amt ($)
Jun-02	To Cash(101)	475	Jun-30	By balance C/d	475
		475			475
Jul-01	To Balance B/d	475
Dr	Office Equipment( 104)				Cr
Date	Particulars	Amt ($)	Date	Particulars	Amt ($)
Jun-05	To Account Payable A/c (131)	6235	Jun-30	By balance C/d	6235
		6235			6235
Jul-01	To Balance B/d	6235
Dr	Account Payable (131)				Cr
Date	Particulars	Amt ($)	Date	Particulars	Amt ($)
Jun-07	To Cash A/c (101)	6235	Jun-05	By Office Equipment A/c (104)	6235
		6235			6235
Dr	Amena Ali, Capital (141)				Cr
Date	Particulars	Amt ($)	Date	Particulars	Amt ($)
Jun-30	To balance C/d	13325	Jun-01	By Cash A/c (101)	13325
		13325			13325
			Jul-01	By Balance B/d	13325
Dr	Amena Ali, Withdrawals( 151)				Cr
Date	Particulars	Amt ($)	Date	Particulars	Amt ($)
Jun-30	To Cash A/c (101)	800	Jun-30	By balance C/d	800
		800			800
Jul-01	To Balance B/d	800
Dr	Fees earned (161)				Cr
Date	Particulars	Amt ($)	Date	Particulars	Amt ($)
			Jun-07	By Cash A/c (101)	2000
Jun-30	To balance C/d	5300	Jun-12	By Accounts Receivable A/c (102)	3300
		5300			5300
			Jul-01	By Balance B/d	5300
	Rent expense (171)				Cr
Date	Particulars	Amt ($)	Date	Particulars	Amt ($)
Jun-14	To Cash A/c(101)	775	Jun-30	By balance C/d	775
		775			775
Jul-01	To Balance B/d	775