Question

Dorothy Crusher is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following events and transactions occurred.April 2 Invested $34,830 cash and equipment valued at $15,540 in the business.2 Hired a secretary-receptionist at a salary of $320 per week payable monthly.3 Purchased supplies on account $830. (Debit an asset account.) 7 Paid office rent of $630 for the month.11 Completed a tax assignment and billed client $1,360 for services rendered. (Use Service Revenue account.)12 Received $3,940 advance on a management consulting engagement.17 Received cash of $2,950 for services completed for Ferengi Co.21 Paid insurance expense $150.30 Paid secretary-receptionist $1,280 for the month.30 A count of supplies indicated that $130 of supplies had been used.30 Purchased a new computer for $7,000 with personal funds. (The computer will be used exclusively for business purposes.)Journalize the transactions in the general journal.

Answer 1

Answer:

Explanation:

April 2

Dr Cash  34,830

Dr Equipment 15,540

    Cr Owner's capital 50,370

April 2

no entry

April 3

Dr Supplies 830

       Cr Accounts payable 830

April 7

Dr Rent expense 630

        Cr Cash 630

April 11

Dr Accaunts receivable 1360

    Cr Service Revenue          1360

April 12

Dr Cash 3940

     Cr Unearned service revenue 3940

April 17

Dr Cash 2950

     Cr Service Revenue 2950

April 21

Dr Insurance expense 150.30

    Cr Cash 150.30

April 21

Dr wages expense 1280

    Cr Cash                      1280

April 30

Dr Supplies expense 130

     Cr Supplies                130

April 30

Dr Equipment 7000

    Cr Owner's capital 7000