Answer to Question #241252 in Accounting for nigdem

Question

On March 1, 2002, Tahir Muktar, a famous businessman in Addis, opened a business named “Universal Garage” which is organized as a sole proprietorship.

Cash....................................... Br, 8,300

Supplies .................................   2,000

Office Equipment...................  10,000

2 Borrowed Br 5,000 from Dashen Bank 

 3 Paid Br 1,800 for rent on a building leased for business purposes

3 Purchased welding and other repair machinery for Br 3,600 cash 

4 Paid Br 200 for a radio advertisement 

8 Sold for Br 200 cash an old office equipment with a recorded cost of Br 200 

 13 Paid weekly salary Br 1,200    

23 Received Br 5,000 additional cash investment from its owner 

24 Repaid Br 1,000 bank loan and paid Br 100 interest on bank loan 

31 Paid Br 500 for electricity and other utilities consumed during the month

31 Paid Tahir Br 1,800 for personal uses 

Answer 1

Dr Cash BR 5,000

Cr Short term loan BR 5,000

Dr Rent expense BR 1,800

Cr Bank BR 1,800

Dr Radio Advertisement BR 200

Cr Cash/Bank Br 200

Dr Cash BR 200

Cr Old office equipment. BR 200

Dr Salary Br 1,200

Cr Cash Bank Br 1,200

Dr Cash BR 5,000

Cr Capital BR 5,000

Dr Bank loan Deposit BR 1,000

Dr Interest on Bank loan BR 100Cr Cash/bank Br 1,100

Dr Electricity Bills BR 500

Cr Cash BR 500

Dr Drawings BR 1,800

Cr Cash BR 1,800