Reference no: EM132563061

The Following transactions in this Question pertain to Nishat Electronic Repair Services, our imaginary small sole proprietorship business.

1. January 1, 2019, Mr. Ali Nishat started Nishat Electronic Repair Services by investing $10,000.

2. January 5, Nishat Electronic Repair Services paid registration and licensing fees for the business, $370.

3. January 6, the company acquired tables, chairs, shelves, and other fixtures for a total of $3,000. The entire amount was paid in cash.

4. January 7, the company acquired service equipment for $16,000. The company paid a 50% down payment and the balance will be paid after 60 days.

5. Also January 7, Nishat Electronic Repair Services purchased service supplies on account amounting to $1,500.

6. January 9, the company received $1,900 for services rendered. We will then record an increase in cash (debit the cash account) and increase in income (credit the income account).

7. January 12, the company rendered services on account, $4,250.00. As per agreement with the customer, the amount is to be collected after 10 days. Under the accrual basis of accounting, income is recorded when earned.

8. January 14, Mr. Nishat invested an additional $3,200.00 into the business. The entry would be similar to what we did in transaction #1.

9. January Rendered services to a big corporation on December 15. As per agreement, the $3,400 amount due will be collected after 30 days.

10. January On December 22, the company collected from the customer in transaction #7.

Required:

Question 1. Prepare Journal entries in the books of Mr. Ali.

Question 2. Prepare ledger