111 Ch2 Exercise

Khalid opens a computer consulting business called Technology Consultants and completes the following transactions in April.

April 1 Khalid invested $160,000 cash along with $27,000 in office equipment in the company.

• Debit: Cash $160,000

  Debit: Equipment $27,000

  Credit: Share Capital - Ordinary $187,000

• Debit: Cash $160,000

  Credit: Share Capital - Ordinary $160,000

• Debit: Equipment $27,000

  Credit: Share Capital - Ordinary $27,000

• Debit: Cash $160,000

  Debit: Equipment $27,000

  Credit: Share Capital - Ordinary $160,000

1. April 2 The company prepaid $9,500 cash for twelve months' rent for an office.

• Debit: Prepaid Rent $9,500

  Credit: Cash $9,500

• Debit: Rent Expense $9,500

  Credit: Cash $9,500

• Debit: Cash $9,500

  Credit: Rent Expense $9,500

• Debit: Cash $9,500

  Credit: Prepaid Rent $9,500

1. April 3 The company made credit purchases of office equipment for $3,400. Payment is due within 10 days.

• Debit: Equipment $3,400

  Credit: Accounts Payable $3,400

• Debit: Equipment $3,400

  Credit: Cash $3,400

• Debit: Accounts Payable $3,400

  Credit: Equipment $3,400

• Debit: Cash $3,400

  Credit: Equipment $3,400

1. April 6 The company completed services for a client and immediately received $5,000 cash.

• Debit: Cash $5,000

  Credit: Service Revenue $5,000

• Debit: Accounts Receivable $5,000

  Credit: Service Revenue $5,000

• Debit: Service Revenue $5,000

  Credit: Cash $5,000

• Debit: Service Revenue $5,000

  Credit: Accounts Receivable $5,000

1. April 9 The company completed a $10,000 project for a client, who must pay within 30 days

• Debit: Accounts Receivable $10,000

  Credit: Service Revenue $10,000

• Debit: Cash $10,000

  Credit: Service Revenue $10,000

• Debit: Service Revenue $10,000

  Credit: Cash $10,000

• Debit: Service Revenue $10,000

  Credit: Accounts Receivable $10,000

1. April 13 The company paid the balance owed ($3,400) to settle the account payable created on April 3.

• Debit: Accounts Payable $3,400

  Credit: Cash $3,400

• Debit: Cash $3,400

  Credit: Accounts Payable $3,400

• Debit: Accounts Payable $3,400

  Credit: Equipment $3,400

• Debit: Cash $3,400

  Credit: Equipment $3,400

1. April 22 The company received $5,100 cash as partial payment for the work completed on April 9.

• Debit: Cash $5,100

  Credit: Accounts Receivable $5,100

• Debit: Accounts Receivable $5,100

  Credit: Cash $5,100

• Debit: Cash $5,100

  Credit: Revenue $5,100

• Debit: Accounts Receivable $5,100

  Credit: Revenue $5,100

1. April 28 Declared and paid $5,900 cash dividends.

• Debit: Dividends $5,900

  Credit: Cash $5,900

• Debit: Cash $5,900

  Credit: Dividends $5,900

• Debit: Service Revenue $5,900

  Credit: Cash $3,400

• Debit: Dividends $5,900

  Credit: Accounts Payable $5,900