Question

11) Mary Sunny began business as Sunny Law Firm on Mary invested $15,000 cash and a law library valued at $6,000 i common stock. these transactions during November 2017, the first month of o completed peration: Nov.1 exchange for .Nov. 2 Purchased $7,500 of office (memo required) equipment from Staples on credit. ov. 8 Paid Staples $3,500 cash in partial settlement of the amount owed from November 2nd Nov. 18 Completed $4,000 of legal work for a client on credit. memo required .Nov. 29 Paid November's utilities of $1,350 Nov. 30 Received $2,500 cash as partial payment for the legal work completed for the client from Nov. 18. Prepare general journal entries to record these transactions. NOTE: two of the journal entries require a MEMO Date Accounts Debit Credit

Answer 1

Ans.	Date	Accounts and Titles				Dr.($)	Cr.($)
	Nov.1	Cash				15,000
		To Capital					15,000
		(Being business strated with cash)
	Nov.1	Law Library				6,000
		To Common stock					6,000
		(Being issue of common stock against Law library)
	Nov.2	Office equipment				7,500
		To Account Payable					7,500
		(Being purchase off. Equipment from Staples on credit)
	Nov.8	Account Payable				3,500
		To Cash					3,500
		(Being partial payment paid to Staples)
	Nov.18	Account Receivable				4,000
		To Service Revenue					4,000
		(Being services rendered to a client on credit)
	Nov.29	Utilities expense				1,350
		To Cash					1,350
		(Being paid utilities for November)
	Nov.30	Cash				2,500
		To Accounts receivable					2,500
		(Being received partial payment of serivvces rendered on credit)