Question

Vera Ernst is a licensed dentist. During the first month of the operation of her business, the following events and transactions occurred.
April 1 Invested $22,000 cash in her business.
1 Hired a secretary-receptionist at a salary of $600 per week payable monthly.
2 Paid office rent for the month $1,100.
3 Purchased dental supplies on account from Dazzle Company $4,200.
10 Performed dental services and billed insurance companies $5,000.
11 Received $1,000 cash advance from Leah Mataruka for an implant.
20 Received $2,700 cash for services performed from Michael Santos.
30 Paid secretary-receptionist for the month $2,400.
30 Paid $2,720 to Dazzle for accounts payable due.
Journalize the transactions.

Answer 1

Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr, $22,000

         To Owner's capital $22,000

(Being cash is recorded)

2. No entry is required

3. Rent expenses Dr, $1,100

      To Cash $1,100

(Being rent paid is recorded)

4. Supplies Dr, $4,200

        To Accounts payable $4,200

(Being supplies is recorded)

5. Accounts receivable Dr, $5,000

      To Service revenue $5,000

(being revenue earned but not received is recorded)

6. Cash Dr, $1,000

       To Unearned service revenue $1,000

(Being unearned service revenue is recorded)

7. Cash Dr, $2,700

       To Service revenue $2,700

(Being service revenue is recorded)

8. Salaries and wage expenses Dr $2,400

          To Cash $2,400

(Being wages expenses is recorded)

9. Accounts payable Dr,  $2,720

          To Cash  $2,720

(Being accounts payable is recorded)