Question

Barbara 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 $27,330 cash and equipment valued at $14,650 in the business.
2 Hired an administrative assistant at a salary of $338 per week payable monthly.
3 Purchased supplies on account $775. (Debit an asset account.)
7 Paid office rent of $590 for the month.
11 Completed a tax assignment and billed client $929 for services rendered. (Use Service Revenue account.)
12 Received $3,021 advance on a management consulting engagement.
17 Received cash of $2,535 for services completed for Ferengi Co.
21 Paid insurance expense $101.
30 Paid administrative assistant $1,352 for the month.
30 A count of supplies indicated that $138 of supplies had been used.
30 Purchased a new computer for $5,841 with personal funds. (The computer will be used exclusively for business purposes.)

Required:
Journalize the transactions in the general journal.

Answer 1

Date Account Debit($) Credit($)

April 2 Cash 27,330

Equipment 14,650

Capital 41,980

April 2 No journal is required on hiring employee

April 3 Supplies 338

Accounts payable 338

April 7 Rent expense 590

Cash 590

April 11 Accounts receivable 929

Service revenue 929

April 12 Cash 3021

Unearned service revenue 3021

April 17 Cash 2535

Service revenue 2535

April 21 Insurance expense 101

Cash 101

April 30 Salary expense 1352

Cash 1352

April 30 Supplies expense 138

Cash 138

April 30 Computer 5841

Capital 5841