Question 1 Required: Complete the accounting equation and journal entries for the transactions given below. Complete

Question

Question 1 Required: Complete the accounting equation and journal entries for the transactions given below. Complete the following ledger accounts: Cash, Capital, Accounts receivable, Accounts payable, Supplies, Fees earned. (You do not have to balance the accounts) The following transactions appeared in the records of Canada Services (the business): C Canada, the owner, invests $20 000 cash, and a building (cost $80 000, valuation $90 000) into the business. Purchase office furniture for $7 000. $2 000 was paid in cash and the remainder on account. C. Canada, the owner, paid his child’s school fees for $2 500 and his water and electricity bill of $500 in cash withdrawn from the business. Canada performed electrical and plumbing services for $4 000 cash and billed the clients for $6 000 on account. Canada Services ordered and received office supplies from ABC Company, on account, for $3 000. $4 000 was received from clients for services provided by Canada Services. The business paid

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No Assets Liabilitites Equity Name of account Name of account Name of account Increase Decerease Increase Decrease Increase Decrease 1) Cash by 20000 Capital by 20000 Building by 90000 Capital by 90000 2) Office furniture by 7000 Cash by 2000 Accounts payable by 5000 3) Cash by 3000 Capital by 3000 4) Cash by 4000 & Accounts receivable by 6000 Increase revenue by 10000 5) Supplies by 3000 Accounts payable by 3000 6) Cash by 4000 Accounts receivable by 4000 7) Cash by 1200 Insurance expense by 1200 8) Cash check by 1000 Accounts payable by 1000 9) Supplies by 1000 Supplies expense by 1000 No Account Debit Credit 1) Cash Ac Dr 20000 Building Ac Dr 90000 Capital 110000 2) Office furniture Dr 7000 Cash 2000 Accounts payable 5000 3) Capital Ac Dr 3000 Cash 3000 4) Cash Ac Dr 4000 Accounts receivable Dr 6000 Fees earned 10000 5) Supplies Ac Dr 3000 Accounts payable 3000 6) Cash Ac Dr 4000 Accounts receivable Dr 4000 7) Insurance Expense Ac Dr 1200 Cash 1200 8) Accounts payable 1000 Cash check 1000 9) Supplies expense Ac Dr 1000 Supplies 1000 Cash Capital 110000 Office Furniture 2000 Fees earned 4000 Capital 3000 Accounts receivable 4000 Insurance expense 1200 Accounts payable 1000 Capital Cash 3000 Cash 110000 Accounts receivable Fees earned 6000 Cash 4000 Accounts payable Cash 1000 Office furniture 5000 Supplies 3000 Supplies Accounts payable 3000 Supplies expense 1000 Fees earned Cash 4000 Accounts receivable 6000

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Question 1 Required: Complete the accounting equation and journal entries for the transactions given below

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Archived Solution

No	Assets	Liabilitites	Equity
Name of account	Name of account	Name of account
Increase	Decerease	Increase	Decrease	Increase	Decrease
1)	Cash by 20000				Capital by 20000
	Building by 90000				Capital by 90000
2)	Office furniture by 7000	Cash by 2000	Accounts payable by 5000
3)		Cash by 3000				Capital by 3000
4)	Cash by 4000 & Accounts receivable by 6000				Increase revenue by 10000
5)	Supplies by 3000		Accounts payable by 3000
6)	Cash by 4000	Accounts receivable by 4000
7)		Cash by 1200				Insurance expense by 1200
8)		Cash check by 1000		Accounts payable by 1000
9)		Supplies by 1000				Supplies expense by 1000

No	Account	Debit	Credit
1)	Cash Ac Dr	20000
	Building Ac Dr	90000
	Capital		110000

2)	Office furniture Dr	7000
	Cash		2000
	Accounts payable		5000

3)	Capital Ac Dr	3000
	Cash		3000

4)	Cash Ac Dr	4000
	Accounts receivable Dr	6000
	Fees earned		10000

5)	Supplies Ac Dr	3000
	Accounts payable		3000

6)	Cash Ac Dr	4000
	Accounts receivable Dr		4000

7)	Insurance Expense Ac Dr	1200
	Cash		1200

8)	Accounts payable	1000
	Cash check		1000

9)	Supplies expense Ac Dr	1000
	Supplies		1000