doha company purchased additional equipment for qr 136 000 cash the company purchase 590406

Aug 29, 2021 | Uncategorized

Doha Company purchased additional equipment for QR 136,000 cash.
The company purchased a building for QR 736,000 cash after the board of directors approved the company’s expansion policy.

a) Prepare journal entries in the general journal.

b) Post the entries to the general ledger.

c) Prepare the income statement, statement of changes in owners’ equity and balance sheet.
The company completed a consulting project for a client in exchange for QR 556,000 cash.
Purchased equipment by paying QR 111,000 cash and signing a note payable for QR 261,000.
Completed consulting services for QR 106,000. The company will collect the amount within 30 days.
Purchased office supplies worth QR 42,000 on account.
Completed consulting services worth QR 129,000. The amount will be collected at a later date.
Doha Company collected QR 65,000 from one of the clients for amounts owed to the company.
The company paid QR 59,000 cash on its accounts payable.
Paid QR 86,000 cash for maintenance of equipment.
The company paid QR 76,000 cash for an advertisement in the local newspaper for the month of October.
Paid QR 336,000 for employee salaries.
An analysis of the company’s insurance policies revealed that QR 41,000 worth of insurance has expired.
An inventory count shows that cost of supplies used by the end of the month was QR 76,000.
Depreciation expense for the equipment was QR 186,000.
The useful life for the building is estimated to be 15 years. There is no salvage value at the end of that useful life.
There are 7 employees that work at Doha Company and they received their salaries at the end of the week. The work week is made up of 5 days starting on Sunday and ending on Thursday. Weekly salary is QR 206,000 and its paid every Thursday. October 31 fell on a Tuesday.
The company provided consulting services worth QR 186,000. The customer had paid for that service in a previous period.

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