JOURNAL ENTRIES Date Account Name 01Jan15 Prepaid Rent Amoun

JOURNAL ENTRIES Date Account Name 01-Jan-15 Prepaid Rent (Amount in S) Debit Credit 12000 -Cash 12000 Being prepaid rent for whole year b) 04-Jan-15 Cash 1900 Accounting Services(Income) 1900 Being amount received in Cash for Accounting services providing 09-Jan-15 Advertisement Expenses 850 -Cash 850 Being Advertisement expenses paid in Cash d) 10-Jan-15 Office supplies 75 - Cash 75 Being Office Suplies purchased in Cash 14-Jan-15 Cash 2725 - Accounting Services(Income) 2725 Being amount received in Cash for Accounting services providing 20-Jan-15 telephone Bill 660 - Cash Being Telephone Bill paid in Cash g) 20-Jan-15 Utilities Bill 2925 - Utilities Bill Payable 2925 Being Utilities bill received, bill due date is 15-Feb-2015 h) 27-Jan-15 Accounts receivable 3750 - Accounting Services(Income) Being Accounting services provided On account 3750 i) 28-Jan-15 Advertisement Expenses 1500 - Cash 1500 Being Advertisement expenses paid in Cash

Solution

Solution:

Balance Sheet
Liabilities	Amount	Assets	Amount
Current Liabilities:		Current Assets:
Cash (Bank Overdraft) (-$12,000 + $1,900 - $850 - $75 + $2,725 - $660 - $1,500)	$10,460.00	Prepaid Rent	$12,000.00
Utilities Bills payable	$2,925.00	Office Supplies	$75.00
		Accounts receivables	$3,750.00
Stockholder\'s Equity:
Retained Earnings ($1,900 - $850 + $2,725 - $660 - $2,925 + $3,750 - $1,500)	$2,440.00
Total Liabilities and stockholder\'s Equity	$15,825.00	Total Assets	$15,825.00