Q No 1-Manal Enterprises incorporated on May 3, 2021. The company engaged in the following transactions during its first month of operations:
May 3 invested in business Rs.40000, Furniture Rs.24,000, equipment Rs.15000
May 4 Paid May office rent expense of $1,000.
May 5 Purchased office supplies for $400 cash. The supplies will last for several months.
May 15 Purchased office equipment for $8,000 on account. The entire amount is due June 15.
May 18 Purchased a company car for $27,000. Paid $7,000 cash and issued a note payable for the remaining amount owed.
May 20 Billed clients $32,000 on account.
May 29 Paid May utilities of $200.
May 30 Received $30,000 from clients billed on May 20.
May 31 Recorded and paid salary expense of $14,000.
Required:
- Prepare journal entries, including explanations, for the above transactions.
- Post each entry to the appropriate ledger accounts (use the T account format)