Reference no: EM132707254

Cronulla Lee opened an IT training school and entered into the following transactions:

Jan 6 Terry contributed (invested) $49,500 cash in the business

7 Purchased office supplies on credit $1,327

13 Performed $3,710 training services for the customer Query Ltd on account

13 Allowance for doubtful debts is established based on 10% of service revenue on credit

19 Received $3,500 in cash from Query Ltd. The outstanding balance is deemed uncollectible and written off.

31 Payroll register showed gross wages and salaries of $5,000. The organisation withheld $1,000 for income tax. Employees are paid in cash.

31 Purchased a twelve-month policy insurance for $1,200

Feb 28 Query Ltd unexpectedly paid half of the amount of its debt written off on 19 Jan.

28 Journalise the adjusting entry relating to the insurance policy for the month.

Required:

Problem 1: Record the transactions in the journal