Question - Selected transactions from Paul Company are as follows:
Jan. 1 - Invested $100,000 cash to start the business.
Jan. 4 - Purchased equipment for S10,000 cash.
Jan. 8 - Purchased supplies on account for $440.
Jan. 12 - Billed customers $3,100 for services performed.
Jan. 15 - Paid $300 for the current month rent.
Jan. 20 - Received a bill for advertising amounted to $230.
Jan. 27 - Paid $200 cash for supplies purchased on Jan 8.
Jan. 31 - Withdrew $280 cash for personal use by owner.
Required:
(a) Prepare the necessary journal entries for the above transactions.
(b) Prepare the cash, Accounts receivable, and accounts payable T accounts.