List the journal entries to record the following transactions and prepare ledger accounts.

1 Feb. 1 Mr. B began a legal firm by investing $14,000 in cash and

  computer equipment having a $10,000 fair value.
2 Feb. 2 Purchased office furniture for $2,200 on account.
3 Feb 3 Provided legal consultancy service for $1,800 for cash.
4 Feb. 4 Provided legal consultancy service for $3,800 on account.
5 Feb. 10 Paid for the furniture purchased on cre200dit on February 2.
6 Feb. 14 Paid $3,200 for rent.
7 Feb. 28 Paid the February utility bills, $200.

JOURNAL ENTRIES

DATE ACCOUNT DEBIT CREDIT

1 FEB cash 14000
Computer equipment 10000
Mr. b, capital (equity) 24000
(Owner invested in business)

2 FEB Office furniture 2200

Account payable 2200
(Purchased office furniture)

3 FEB cash 1800

Legal consultancy revenue 1800
(Rendered service for cash)
4 FEB Account receivable 3800
Legal consultancy revenue 3800
(Rendered services on account)

10 FEB Account payable 2200

Cash 2200
(Paid for account)

14 FEB Rent expense 3200

cash 3200
(Paid for rent)

28 FEB Utilities expense 200

cash 200
(Paid for utilities)

LEDGER ACCOUNT
Cash a/c
particular debit particular credit
Mr. b/s capital 1400 By loan 2200
Legal consultancy 1800 By rent 3200
Utilities expense 200
 Cash balance 200
15800 15800

Computer equipment a/c

particular debit particular credit
Mr. b/s capital
1000
0
Cash b/c 10000
1000 10000
0

MR B/S CAPITAL A/C

particular debit particular credit
Cash 1400
Comp equip 10000

Cash b/c 24000

24000 24000