Exercise 2: Mimi started a new business called Omo Company and completed the following transactions during November:
Nov.1 Mimi transferred 56,000 out of a personal savings bank account to a checking account she in the name of the business.
1. Rented office space and paid cash for the month’s rent of 800
3. Purchased electrical equipment for 14,000 by paying 3,200 and agreeing to pay the remaining balance in six months
5. Purchased office supplies by paying 900 cash.
6. Completed electrical work and received 1,000 cash for doing the work.
Purchased 3,800 of office equipment on credit
15. Completed electrical work on credit in the amount of 4,000
20. Paid for the office equipment purchased on Nov.9
24. Billed a customer for electrical work completed 600
28. Received 4,000 for the work completed on Nov.15
30. Paid salary of employees 1,200
30. Paid the monthly utilities bill 440
30. Withdrew 700 from the business for personal use
Nov.1: Debit Cash (personal savings bank account) $56,000
Credit Cash (checking account) $56,000
Nov.1: Debit Rent Expense $800
Credit Cash (checking account) $800
Nov.3: Debit Electrical Equipment $14,000
Credit Cash (checking account) $3,200
Credit Accounts Payable $10,800
Nov.5: Debit Office Supplies $900
Credit Cash (checking account) $900
Nov.6: Debit Cash (checking account) $1,000
Credit Electrical Work Revenue $1,000
Nov.9: Debit Office Equipment $3,800
Credit Accounts Payable $3,800
Nov.15: Debit Accounts Receivable $4,000
Credit Electrical Work Revenue $4,000
Nov.20: Debit Accounts Payable $3,800
Credit Cash (checking account) $3,800
Nov.24: Debit Accounts Receivable $600
Credit Electrical Work Revenue $600
Nov.28: Debit Cash (checking account) $4,000
Credit Accounts Receivable $4,000
Nov.30: Debit Salaries Expense $1,200
Credit Cash (checking account) $1,200
Nov.30: Debit Utilities Expense $440
Credit Cash (checking account) $440
Nov.30: Debit Cash (checking account) $700
Credit Owner's Drawings $700