Accounting -AW-Q445

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The balances of the accounts of A company LAW at the 30/09/2014 were as follows


Cash ?
Buildings $7500
Long term loans $12000
Machinery $5000
Owners Equity ?
Accounts Payable $8200
Accounts Receivable $17000


  1. Opened business by investing cash of $20,000.
  2. Billed customers for services rendered, $4,000.
  3. Paid for six months’ rent in advance, $1,000.
  4. Received telephone bill, to be paid next week, $200.
  5. Withdrawals of $1,600 were made by owner.
  6. Received $3,000 from customers billed in b.

  8. Paid half of telephone bill.
  9. Received $400 in advance of performing service.
  10. Provided services in the amount of $2,000, receiving $600 in partial payment.
  11. Received $800 of the amount owed from i, transaction
  12. Received an $800 bill for this month’s rent. Payment won’t be made right away.
  13. Agreed to offer services for a price of $1,600.
  14. Performed the services, will get paid later
  15. Owner contributes cash of $10,000 and a truck worth $12,000 into the business
  16. Purchased gasoline on credit, $40.



  • Open the accounts
  • Make the Journal entries
  • Inform the ledger
  • Prepare the trial balance





Date Account- Information Debit Credit





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