As the owner of an art gallery with a keen eye for upcoming talent, you find a painting that you feel is sure to net a large pro
1 answer:
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Answer:
See explanation Section Below:
Explanation:
Requirement A
Kochi Services
Journal entry
1. May 1 Cash Debit INR40,000
Capital Credit INR40,000
<em>(Invested cash as sole owner but not for common stock)</em>
2. No entry required
<em>(Because the owner has not paid the wages for the employees)</em>
3. Prepaid Rent Debit INR24,000
Cash Credit INR24,000
<em>(Signed a rental agreement of 2 years for a warehouse by paying cash in advance)</em>
4. Furniture and Equipment Debit INR30,000
Cash Credit INR10,000
Accounts payable Credit INR20,000
<em>(Purchase furniture and equipment on account and cash)</em>
5. Prepaid Insurance Debit INR1,800
Cash Credit INR1,800
<em>(Paid insurance in advance for furniture and equipment)</em>
6. Office supplies Debit INR420
Cash Credit INR420
<em>(Paid cash for office supplies)</em>
7. Office supplies Debit INR1,500
Accounts payable Credit INR1,500
<em>(Purchase office supplies on account)</em>
8. Cash Debit INR8,000
Accounts receivable Debit INR12,000
Revenues Credit INR20,000
<em>(Receive cash for providing services and performed services on account)</em>
9. Accounts payable Debit INR400
Cash Credit INR400
<em>(Paid cash for office supplies due on transaction 7)</em>
10. Cash Debit INR3,000
Accounts receivable Credit INR3,000
<em>(Receive cash from customers due on transaction 8)</em>
11. Utilities expense Debit INR380
Utilities payable Credit INR380
<em>(Utilities bill to be paid on the next month)</em>
12. Salaries expense Debit INR6,100
Cash Credit INR6,100
(Paid cash on salaries expenses)
Requirement B
See the image below
Requirement C
Kochi Services
Trial Balance
May 31, 2020
Account Title Debit (INR) Credit (INR)
Cash 8,280
Accounts Receivable 9000
Capital 40,000
Prepaid Rent 24,000
Furniture & Equipment 30,000
Prepaid Insurance 1,800
Salaries Expense 6,100
Accounts Payable 21,100
Utilities Expense 380
Revenues 20,000
Office Supplies 1920
<u>Utilities Payable 380 </u>
Total INR 81,480 INR 81,480
