*Exercises* (Transaction Analysis-Service Company)
Brown 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 $73,600 cash and
equipment valued at $32,200 in the business.
2 Hired a secretary-receptionist at a
salary of $667 per week, payable monthly.
3 Purchased supplies on account $1,610.
(Debit an asset account.)
7 Paid office rent of $1,380 for the
month.
11 Completed a tax
assignment and billed client $2,530 for services rendered. (Use Service Revenue
account.)
12 Received $7,360 advance on a management
consulting engagement.
17 Received cash of $5,290 for services
completed for Calunga Co.
21 Paid insurance expense $253.
30 Paid secretary-receptionist $2,668 for
the month.
30 A count of supplies indicated that $276
of supplies had been used.
30 Purchased a new computer for $14,030
with personal funds.
(The computer will be used exclusively for
business purposes.)
*** Lets journalize the transactions in the general journal
*** Lets journalize the transactions in the general journal
Apr. 2
Cash.......................................................... 73,600
Equipment............................................ 32,200
Owner's
Capital............................................. 105,800
2 No
entry - Not a transaction
3 Supplies…………………………… 1,610
Accounts
Payable……………. 1,610
7 Rent
Expense………………………… 1,380
Cash…………………………………… 1,380
11 Accounts
Receivable………………….. 2,530
Service
Revenue………………………. 2,530
12 Cash………………………………………… 7,360
Unearned
Service Revenue………….. 7,360
17 Cash………………………………………. 5,290
Service
Revenue…………………… 5,290
21 Insurance
Expense……………………… 253
Cash………………………………… 253
30 Salaries
and Wages Expense……………. 2,668
Cash……………………………… 2,668
30 Supplies
Expense………………………… 276
Supplies……………………………….. 276
30 Equipment………………………………… 14,030
Owner’s
Capital……………………. 14,030
prepaid expenses,unearned revenues,accrued revenues,accrued expenses
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