Question

Beverly 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. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Answer 1

Answer:

Cash          34,830

Equipment 15,540

     Capital Account          50,370

no entry needed

supplies 830

   account payable 830

rent expense 630

     cash                  630

account receivable 1,360

      service revenue          1,360

cash        3,940

    unearned revenue      3,940

cash      2,950

    service revenue     2,950

insurance expense 150

    cash                             150

wages expense   1,280

    cash                               1,280

supplies expense   130

        supplies                 130

Equipment- Computer 7,000

       Capital Account               7,000

Explanation:

We must always o debit = credit

and record the entries to reflect the reality.