Respuesta :
Answer:
See explanation Section Below:
Explanation:
Requirement A
Kochi Services
Journal entry
1. May 1 Cash Debit INR40,000
Capital Credit INR40,000
(Invested cash as sole owner but not for common stock)
2. No entry required
(Because the owner has not paid the wages for the employees)
3. Prepaid Rent Debit INR24,000
Cash Credit INR24,000
(Signed a rental agreement of 2 years for a warehouse by paying cash in advance)
4. Furniture and Equipment Debit INR30,000
Cash Credit INR10,000
Accounts payable Credit INR20,000
(Purchase furniture and equipment on account and cash)
5. Prepaid Insurance Debit INR1,800
Cash Credit INR1,800
(Paid insurance in advance for furniture and equipment)
6. Office supplies Debit INR420
Cash Credit INR420
(Paid cash for office supplies)
7. Office supplies Debit INR1,500
Accounts payable Credit INR1,500
(Purchase office supplies on account)
8. Cash Debit INR8,000
Accounts receivable Debit INR12,000
Revenues Credit INR20,000
(Receive cash for providing services and performed services on account)
9. Accounts payable Debit INR400
Cash Credit INR400
(Paid cash for office supplies due on transaction 7)
10. Cash Debit INR3,000
Accounts receivable Credit INR3,000
(Receive cash from customers due on transaction 8)
11. Utilities expense Debit INR380
Utilities payable Credit INR380
(Utilities bill to be paid on the next month)
12. Salaries expense Debit INR6,100
Cash Credit INR6,100
(Paid cash on salaries expenses)
Requirement B
See the image below
Requirement C
Kochi Services
Trial Balance
May 31, 2020
Account Title Debit (INR) Credit (INR)
Cash 8,280
Accounts Receivable 9000
Capital 40,000
Prepaid Rent 24,000
Furniture & Equipment 30,000
Prepaid Insurance 1,800
Salaries Expense 6,100
Accounts Payable 21,100
Utilities Expense 380
Revenues 20,000
Office Supplies 1920
Utilities Payable 380
Total INR 81,480 INR 81,480
To meet the requirements, the following accounting records are prepared for Kochi Services for the month of May, 2020:
a. Journal Entries:
May 1: Debit Cash INR40,000
Credit Equity INR40,000
May 3. Debit Prepaid Rent INR24,000
Credit Cash INR24,000
May 4. Debit Furniture and Equipment INR30,000
Credit Cash INR10,000
Credit Accounts Payable INR20,000
May 5. Debit Prepaid Insurance INR1,800
Credit Cash INR1,800
May 6. Debit Office Supplies INR420
Credit Cash INR420
May 7. Debit Office Supplies INR1,500
Credit Accounts Payable INR1,500
May 8. Debit Cash INR8,000
Debit Accounts Receivable INR12,000
Credit Service Revenue INR20,000
May 9. Debit Accounts Payable INR400
Credit Cash INR400
May 10. Debit Cash INR3,000
Credit Accounts Receivable INR3,000
May 11. Debit Utilities Expense INR380
Credit Accounts Payable INR380
May 12. Debit Salaries Expense INR6,100
Credit Cash INR6,100
b. T-accounts:
Cash
Date Account Titles Debit Credit
May 1: Equity INR40,000
May 3. Prepaid Rent INR24,000
May 4. Furniture and Equipment INR10,000
May 5. Prepaid Insurance INR1,800
May 6. Office Supplies INR420
May 8. Service Revenue INR8,000
May 9. Accounts Payable INR400
May 10. Accounts Receivable INR3,000
May 12. Salaries Expense INR6,100
May 31. Balance INR8,280
Totals INR51,000 INR51,000
Accounts Receivable
Date Account Titles Debit Credit
May 8. Service Revenue INR12,000
May 10. Cash INR3,000
May 31. Balance INR9,000
Totals INR12,000 INR12,000
Prepaid Rent
Date Account Titles Debit Credit
May 3. Cash INR24,000
Prepaid Insurance
Date Account Titles Debit Credit
May 5. Cash INR1,800
Office Supplies
Date Account Titles Debit Credit
May 6. Cash INR420
May 7. Cash INR1,500
May 31. Balance INR1,920
Totals INR1,920 INR1,920
Furniture and Equipment
Date Account Titles Debit Credit
May 4. Cash INR10,000
May 4. Accounts Payable INR20,000
May 31. Balance INR30,000
Totals INR30,000 INR30,000
Accounts Payable
Date Account Titles Debit Credit
May 4. Furniture and Equipment INR20,000
May 6. Office Supplies INR1,500
May 11 Utilities Expense INR380
May 9. Cash INR400
May 31. Balance INR21,480
Totals INR21,880 INR21,880
Equity
Date Account Titles Debit Credit
May 1. Cash INR40,000
Service Revenue
Date Account Titles Debit Credit
May 8. Cash INR8,000
May 8 Accounts Receivable INR12,000
May 31. Balance INR20,000
Totals INR20,000 INR20,000
Utilities Expense
Date Account Titles Debit Credit
May 11. Accounts Payable INR380
Salaries Expense
Date Account Titles Debit Credit
May 12. Cash INR6,100
c. KOCHI SERVICES
Trial Balance as of May 31, 2020:
Date Account Titles Debit Credit
Cash INR8,280
Accounts Receivable 9,000
Prepaid Rent 24,000
Prepaid Insurance 1,800
Office Supplies 1,920
Furniture and Equipment 30,000
Accounts Payable INR21,480
Equity 40,000
Service Revenue 20,000
Utilities Expense 380
Salaries Expense 6,100
Totals INR81,480 INR81,480
Data Analysis:
May 1: Cash INR40,000 Equity INR40,000
May 3. Prepaid Rent INR24,000 Cash INR24,000
May 4. Furniture and Equipment INR30,000 Cash INR10,000 Accounts Payable INR20,000
May 5. Prepaid Insurance INR1,800 Cash INR1,800
May 6. Office Supplies INR420 Cash INR420
May 7. Office Supplies INR1,500 Accounts Payable INR1,500
May 8. Cash INR8,000 Accounts Receivable INR12,000 Service Revenue INR20,000
May 9. Accounts Payable INR400 Cash INR400
May 10. Cash INR3,000 Accounts Receivable INR3,000
May 11. Utilities Expense INR380 Accounts Payable INR380
May 12. Salaries Expense INR6,100 Cash INR6,100
Learn more about preparing the trial balance at https://brainly.com/question/23311991
