Question

after researching the different forms of business organization, Natalie Kocbel decides to start a proprietorship called Nat's Clock Rewinding. She then starts the process of getting the business running, During the month of January 2020, the following activities take place: an 12 an 20 n. 22 an. 23 Natalie invests $2.000 cash, and tools and equipment worth $750 into the business. Her family provides her business with a $3,000 loan, and she signs a year note payable for it. Pays $250 to advertise in the January 21 sue of the community wspaper Natalie hopes that this ad will generate revenue during the coming months. Buys business supplies for $294 cash Natalie realizes that the business needs a new piece of equipment. She purchases and receives new equipemt that costs $3,200. It will be paid for in February Natalie performs some clock rewinding services for her first client, the Time Stand Still yoga studio, and leaves an invoice for $925 with the studio owner. The owner says the invoice will be paid some time February. A $192 invoice is received for the use of the cell phone, which is used exclusively for the business. The invoice is for services provided in January and is payable by February 6. The Time Stand Still yoga studio wants more of their clocks rewound next month, Natalie is thrilled! She receives S200 cash in advance as a down payment Natalie realizes that her initial cash investment is not enough. She meets with her bank and completes an application for a $2.000 loan an28 aan 29 Required: ournal Entries Marks available: 4 per Journal Entry any error results in 4 marks lost Record the above events as applicable in General Journal format using the spaces below. clect the most appropriate account name from the drop down list attached to cach space, and enter the transaction amount in the DR and CR spaces. there are any cases where no entry is required, select "NO ENTRY REQUIRED" in the account namespaces. Account Names DR CR an 12 an. 20 an 22 an. 23 an. 28 an 29

Answer 1

Date Account Name Jan Cash Atc, Tools & Equipment Capital Alc. 20 DD 450 Afc 2750 3000 13 Cash Alc Notes 3000 payable 2.50 18 Advertisement Expense Atas Cash All 250 294 20 Supplies Cash 294. 320D 22 Equipement Alc Accounts payable 320D 925 bis 23 Auounts Receivables Service Revenue 925 24 192 Telephone Accounts Expense. payable 192 200 28. Cash Alc - unearned Revenue 200 29. No Entry Required because loan is not yet processed.

Cash Ac. - Capital Alc 2000 Notes payable 3000 linearned Reunul 200 Advertisement Supplies in 250 294 Tools & Equipment 750 Alc. Capital Alc Ending balance 750 750 750 Capital Alc Cash Act 2000 Tools & Equipm- 750 2750 Ending balance Notes Payable Cash Alc 300 13000 Ending balance Accounts 3392 Ending balance payable Equipment Telephone Expense 3200 192

Accounts Receivables Service Reneno Ending balance 9.25 Expense. Advertisement 250 Cash Ending balance 25o. Alc Supplies 294 Cash Ending balance 294 Ale Accounts payable Equipment 3200 Ending balance .3200 Service Revenue. Accounts Receivables 925 Ending balance 925

Auounts payable Telephone Expense 192 Ending balance 192 Uncanned Revenue Cash Afc. 200 Ending balance 200
If you are benefited from the solution then please LIKE , if disliked then please specify the reason.