Reference no: EM132820496
Question - Majid Al Bahi opened a customs consulting business in Dubai UAE in May 2020. He started the business with an investment of 400,000 cash. Additional financial transactions that were recorded in May 2020 as disclosed in the trial balance below were as follows:
Cash-400,000
Office supplies-2,000
Accounts Receivable-200,000
Accounts payable-2,000
Capital-400000
Revenue-200,000.
In June the following transactions were completed.
1. Mr. Mohamed contributed (invested) 2 Apple computers (Computer Equipment) to the business with a value of AED 100,000.
2. He performed consulting services to Dubai Customs relating to data mining for 120,000 on account.
3. He obtained an advance from Dubai customs for a future project 240,000.
4. He paid wages to the secretary AED 4,000.
5. He withdrew AED 1,260 from the business to pay his personal police fines.
6. He paid the account payable of May as shown in the trial balance above.
7. He paid DEWA bill for June AED 20,000
8. He collected AED 100,000 from Dubai Customs (see entry 2)
Required -
1. Prepare general journal entries to record these transactions. (use account titles listed in part 2).
2. a) Open general ledger accounts: cash, accounts receivable, office supplies, accounts payable, capital and revenue and post the account balances from the trial balance above. b) open additional general ledger accounts: DEWA expense, Etisalat Expense, wages expense, unearned revenue, and withdrawals and post the journal entries of June.
3. Prepare trial balance as of June 30, 2020.