On 1 March 2021, Tom set up J Hair Salon by investing $50,000 cash and $30,000 of equipment in J Hair Salon. On that day, he paid rent of $15,000 for three months. During March 2021, he completed the following additional transactions:  Purchased $3,000 of supplies on account.  Provided haircuts and treatments and received $20,000 cash.  Determined that the cost of supplies on hand in end-March was $500. Analyse the above and record the necessary entries for March 2021. For this question, dates and narrations are not required

On 1 March 2021, Tom set up J Hair Salon by investing $50,000 cash and $30,000 of equipment in J Hair Salon. On that day, he paid rent of $15,000 for three months. During March 2021, he completed the following additional transactions:  Purchased $3,000 of supplies on account.  Provided haircuts and treatments and received $20,000 cash.  Determined that the cost of supplies on hand in end-March was $500. Analyse the above and record the necessary entries for March 2021. For this question, dates and narrations are not required

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 55P

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