Posted: December 27th, 2023

University of Modern Sciences ACCT 201 On January 1, 2016, Mubarak starts a new computer programming

Question One:On January 1, 2016, Mubarak starts a new computer programming centre which he namesMicrosoft. During the first month of operations, the following transactions occurred:1- Invested $275,000 in cash in the business.2- Purchased equipment for 95,000, paying $35,000 in cash and signing a note payable for theremaining balance.3- Paid $3,500 cash for January rent.4- Received a bill from Sky News for advertising amounted to $850.5- Provided programming services for $25,250 cash.6- Paid $5,525 cash for January utilities.7- Paid $500 cash for salaries.8- Mubarak made an additional investment in the business amounted to $115,500.9- Mubarak withdrew $2,500 cash for personal use.10- Purchased supplies on account for $50,000.Required:a. Prepare journal entries for the above transactions.b. Post to the ledger.c. Prepare the trial balance.Question Two:Sky Advertising AgencyTrial BalanceApril 30, 2016CashSuppliesPrepaid InsuranceEquipmentNotes PayableAccounts PayableUnearned Service RevenueOwner’s CapitalOwner’s DrawingService RevenueSalaries ExpenseRent ExpenseUtilities ExpenseTotalDebit$38,0006,2501,50012,500Credit$12,5006,2503,00025,0001,25025,00010,0001,2501,00071,75071,750Other information:1. Supplies of $2,000 are used on April.2. Depreciation for the month $500.3. Accrued salaries on April 30 are $4,000.4. Services performed but not recorded on April 30 are $1,000.5. Expired insurance for April are $250.6. Services related to unearned service revenue in April worth $1,500 were provided.Required:a. Prepare the adjusting entries on April 30, 2016.b. Prepare the adjusted trial balance.c. Prepare the financial statements on April 30, 2016.

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