At the beginning of April, Haron Kadir launched a custom computer solutions company called Softworks. The company had the following transactions during April. April Haron Kadir invested $65,000 cash, office equipment with a value of $5,750, and $30,000 of computer equipment in the company. The company purchased land worth $22,000 for an office by paying $5,000 cash and signing a long-term note payable for $17,000. The company purchased a portable building with $34,500 cash and moved it onto the land acquired on date 2nd. The company paid $5,000 cash for the premium on a two-year insurance policy. The company provided services to a client and immediately collected $4,600 cash. The company purchased $4,500 of additional computer equipment by paying $800 cash and signing a long-term note payable for $3,700. The company completed $4,250 of services for a client. This amount is to be received within 30 days. The company purchased $950 of additional office equipment on credit. The company completed client services for $10,200 on credit. The company received a bill for rent of a computer testing device that was used on a recently completed job. The $320 rent cost must be paid within 30 days. The company collected $5,100 cash in partial payment from the client described in transaction dated 9th. The company paid $1,800 cash for wages to an assistant. The company paid $950 cash to settle the payable created in transaction dated 8th. The company paid $608 cash for minor maintenance of the company’s computer equipment. Haroon Kadir withdrew $6,230 cash from the company for personal use. The company paid $1,800 cash for wages to an assistant. The company paid $750 cash for advertisements on the web during April. Required Open the following ledger accounts—their account numbers are in parentheses (use the balance column format): Cash (101); Accounts Receivable (106); Prepaid Insurance (108); Office Equipment (163); Computer Equipment (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); H. Kadir Capital (301); H. Kadir Withdrawals (302); Fees Earned (402); Wages Expense (601); Computer Rental Expense (602); Advertising Expense (603); and Repairs Expense (604). Post the journal entries from part 1 to the accounts and enter the balance after each posting.

At the beginning of April, Haron Kadir launched a custom computer solutions company called Softworks. The company had the following transactions during April. April Haron Kadir invested $65,000 cash, office equipment with a value of $5,750, and $30,000 of computer equipment in the company. The company purchased land worth $22,000 for an office by paying $5,000 cash and signing a long-term note payable for $17,000. The company purchased a portable building with $34,500 cash and moved it onto the land acquired on date 2nd. The company paid $5,000 cash for the premium on a two-year insurance policy. The company provided services to a client and immediately collected $4,600 cash. The company purchased $4,500 of additional computer equipment by paying $800 cash and signing a long-term note payable for $3,700. The company completed $4,250 of services for a client. This amount is to be received within 30 days. The company purchased $950 of additional office equipment on credit. The company completed client services for $10,200 on credit. The company received a bill for rent of a computer testing device that was used on a recently completed job. The $320 rent cost must be paid within 30 days. The company collected $5,100 cash in partial payment from the client described in transaction dated 9th. The company paid $1,800 cash for wages to an assistant. The company paid $950 cash to settle the payable created in transaction dated 8th. The company paid $608 cash for minor maintenance of the company’s computer equipment. Haroon Kadir withdrew $6,230 cash from the company for personal use. The company paid $1,800 cash for wages to an assistant. The company paid $750 cash for advertisements on the web during April. Required Open the following ledger accounts—their account numbers are in parentheses (use the balance column format): Cash (101); Accounts Receivable (106); Prepaid Insurance (108); Office Equipment (163); Computer Equipment (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); H. Kadir Capital (301); H. Kadir Withdrawals (302); Fees Earned (402); Wages Expense (601); Computer Rental Expense (602); Advertising Expense (603); and Repairs Expense (604). Post the journal entries from part 1 to the accounts and enter the balance after each posting.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 50E: Exercise 1-50 Statement of Cash Flows OBJECTIVE o Walters Inc. began operations on January I. 2019....

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Question

At the beginning of April, Haron Kadir launched a custom computer solutions company called Softworks. The company had the following transactions during April.

April

Haron Kadir invested $65,000 cash, office equipment with a value of $5,750, and $30,000 of computer equipment in the company.
The company purchased land worth $22,000 for an office by paying $5,000 cash and signing a long-term note payable for $17,000.
The company purchased a portable building with $34,500 cash and moved it onto the land acquired on date 2^nd.
The company paid $5,000 cash for the premium on a two-year insurance policy.
The company provided services to a client and immediately collected $4,600 cash.
The company purchased $4,500 of additional computer equipment by paying $800 cash and signing a long-term note payable for $3,700.
The company completed $4,250 of services for a client. This amount is to be received within 30 days.
The company purchased $950 of additional office equipment on credit.
The company completed client services for $10,200 on credit.
The company received a bill for rent of a computer testing device that was used on a recently completed job. The $320 rent cost must be paid within 30 days.
The company collected $5,100 cash in partial payment from the client described in transaction dated 9^th.
The company paid $1,800 cash for wages to an assistant.
The company paid $950 cash to settle the payable created in transaction dated 8^th.
The company paid $608 cash for minor maintenance of the company’s computer equipment.
Haroon Kadir withdrew $6,230 cash from the company for personal use.
The company paid $1,800 cash for wages to an assistant.
The company paid $750 cash for advertisements on the web during April.

Required

Open the following ledger accounts—their account numbers are in parentheses (use the balance column format): Cash (101); Accounts Receivable (106); Prepaid Insurance (108); Office Equipment (163); Computer Equipment (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); H. Kadir Capital (301); H. Kadir Withdrawals (302); Fees Earned (402); Wages Expense (601); Computer Rental Expense (602); Advertising Expense (603); and Repairs Expense (604). Post the journal entries from part 1 to the accounts and enter the balance after each posting.

6 Computer equipment A/c
To Cash A/c
To Notes payable A/c
( Being record of equipment purchased)
4500
800
3700
7 Accounts receivable A/c
To Service revenue A/c
(Being record of service revenue )
4250
4250
8 Office equipment A/c
To Accounts payable A/c
|( Being record of equipment purchased)
950
950
9 Accounts receivable A/c
To Service revenue A/c
10200
10200
(Being record of service revenue )
10 Rent A/c
To Rent payable A/c
|(being record of rent payable )
320
320
11 Cash A/c
To Accounts receivable A/c
5100
5100
( Being record of cash collected )

Date
Particulars
Debit ( $) Credit ($)
Apr-01 Cash A/c
Office equipment A/c
Computer equipment A/c
To H. Kadir Capital A/c
(Being record of capital invested)
65000
5750
30000
100750
2 Land A/c
22000
To Cash A/c
5000
To Notes payable A/c
( Being record of land purchased )
17000
3 Buildings A/c
To Cash A/c
34500
34500
|( Being record of building purchased )
4 Prepaid insurance A/c
5000
To Cash A/c
5000
( Being record of cash paid )
5 Cash A/c
To Service revenue A/c
(Being record of cash received )
4600
4600

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