Question

Betty 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 $27,750 cash and equipment valued at $12,920 in the business.
2 Hired an administrative assistant at a salary of $305 per week payable monthly.
3 Purchased supplies on account $673. (Debit an asset account.)
7 Paid office rent of $574 for the month.
11 Completed a tax assignment and billed client $1,188 for services rendered. (Use Service Revenue account.)
12 Received $3,207 advance on a management consulting engagement.
17 Received cash of $2,354 for services completed for Ferengi Co.
21 Paid insurance expense $105. 30 Paid administrative assistant $1,220 for the month.
30 A count of supplies indicated that $113 of supplies had been used.
30 Purchased a new computer for $7,092 with personal funds. (The computer will be used exclusively for business purposes.)

Required:
Journalize the transactions in the general journal.

Answer 1

Date Account Details Debit Credit

April 2 Cash $ 27,750

Equipment $12,290

Owner's Capital $40,670

Date Account Details Debit Credit

April 2 Entry not required till payment

Date Account Details Debit Credit

April 3 Supplies $673

Accounts Payable $673

Date Account Details Debit Credit

April 7 Rent expense $574

Cash $574

Date Account Details Debit Credit

April 11 Accounts Receivables $1,188

Service Revenue $1,188

Date Account Details Debit Credit

April 12 Cash $3,207

Unearned revenue $3,207

Date Account Details Debit Credit

April 17 Cash $2,354

Service Revenue $2,354

Date Account Details Debit Credit

April 21 Insurance expense $105

Cash $105

Date Account Details Debit Credit

April 30 Salaries expense $1,220

Cash $1,220

Date Account Details Debit Credit

April 30 Supplies expense $113

Supplies $113

Date Account Details Debit Credit

April 30 Equipment $7,092

Owner's Capital $7,092