PRACTICE QUESTION AND ANSWER ON PREPARING JOURNAL

Mr Sharif started his business, Comfort Furniture Services, on October 1, 2020.

The following transactions occurred during the month of October.
Nov 1 Mr Sharif invested RM 30,000 cash and brought his own equipment for
business use, worth RM 5,000.
Nov 2 Purchased a used motor vehicle from Skyline Auto for RM 25,000. Cash
was paid for RM 10,000 and remaining will be paid after 15 days.
Nov 4 Made furniture for British University and collected cash RM 7,400.
Nov 8 Mr Sharif withdrew RM 2000 from the business, for his personal use.
Nov 12 Purchased supplies for RM 1650 for cash.
Nov 17 Paid the amount owed to Skyline Auto for the transaction on Nov 2.
Nov 18 Paid RM 80,000 office rent for 1 year.
Nov 20 Received RM 2,480 from ABC Company for furniture orders . The furniture
will be delivered later in December.
Nov 22 Provided services to Samson Company, RM 1,250. The client will pay after
7 days.
Nov 23 Paid The National for advertisement expenses RM 600.
Nov 29 Samson Company paid the amount due for transaction on Nov 22.

Chart of Accounts
 Owner’s Capital Owner’s Drawings
Equipment Accounts Receivable
Cash Unearned revenue
Account Payable Cash
Office Supplies Service Revenue
Advertising expense Prepaid rent

Required.
Using the General Journal template provided, make journal entries to record the
above transactions for DM Printing Services.

Date Details Debit Credit

Nov 1 Cash 30000
Equipment 5000
Owner capital 35000

2 Equipment 25,000
Account Payable 15,000
Cash 10,000

4 Cash 7,400
Service Revenue 7,400

8 Owner’s Drawings 2,000

Cash 2,000

12 Office Supplies 650

Cash 650

17 Account Payable 15000

Cash 15000

18 Prepaid rent 80000

 Cash 80000

20 Cash 2,480
Unearned revenue 2,480

22 Accounts Receivable 1,250

Service Revenue 1,250

23 Advertisement Expense 600

Cash 600

29 Cash 1,250
Accounts Receivable 1,250