AC 53 - Answer Date Particulars Amount DrAmount Cr xxx Cash...

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Question: Arranging Balance Sheets WER Corp had the following transactions during the first month of operations. You need to record these transactions in the journal entry template.Received $150,000 cash from investors for ownership in the company.Purchased inventory to be sold to customers; $45,000 on account.Rented office space; $6,000 was paid for this month.Sold $5,000 of inventory on account (you have not been paid yet); sales price of $7,500.Acquired office furniture for $3,000 cash.Paid $12,000 to employees who worked this month.Acquired manufacturing equipment costing $39,000; paid cash.Paid $700 for housekeeping service.Received a $100 utility bill for this month.Collected $7,500 owed from customers.In addition, you need to determine the balance in the cash account at the end of the first month.
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Unformatted text preview: Answer: Date Particulars Amount DrAmount Cr xxx Cash 150000 Equity Share capital 150000 (Being amount received from Sharteholders for shares) xxx Purchases 45000 Creditors 45000 (Being purchases made on account) xxx Rent 6000 Cash 6000 (Being rent paid for the month) xxx Debtors 7500 Sales 7500 (Being sales made on account) xxx Furniture 3000 Cash 3000 (Being furniture purchased in cash) xxx Salary 12000 Cash 12000 (Being Salary paid in cash) xxx Equipment 39000 Cash 39000 (Being equipment purchased for cash) xxx Housekeeping Expenses 700 Cash 700 (Being housekeeping expenses paid in cash) xxx Cash 7500 Debtors 7500 (Being part payment collected from debtors) Cash balance at end of month = $150,000 - $6,000 - $3,000 - $12,000 - $39,000 - $700 + $7,500 = $96,800....
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