Reference no: EM132545162

Fareed & Sons Enterprises incorporated on May 3, 2018. The company engaged in the following transactions during its first month of operations:

May 3: Issued capital stock in exchange for PKR 300,000 cash.

May 4: Paid May office rent expense of PKR 500.

May 5: Office Supplies were purchased for PKR 900.

May 15: Office Equipment was purchased for PKR 30,000.

May 18: A truck for company was purchased costing PKR 500,000. Paid PKR 100,000 while signed a note payable for the remaining amount.

May 20: Billed clients PKR 4,00,000 on account.

May 26: Declared a PKR 55,000 dividend. The entire amount will be distributed to shareholders on June 26.

May 29: Paid May utilities of PKR 20,000.

May 30: Received PKR 3,50,000 from clients billed on May 20.

May 31: Recorded and paid salary expense of PKR 1,20,000.

A partial list of the account titles used by the company includes:

Cash Dividends      Payable Accounts                      Receivable

Dividends Office            Supplies                       Capital Stock

Office Equipment          Client Revenue                      Truck

Office Rent                Expense Notes                Payable Salary Expense

Accounts Payable           Utilities Expense             Depreciation expense

Required:

Question a. Prepare journal entries in a proper format discussed in the class.

Question b. Classify the above journal entries into T-Accounts.

Question c. Prepare an unadjusted trial balance dated May 31, 2018.