Question

Sheila finds investor to give her $50.000 to start her consulting practi

US Economic Events for Sheila Johnson Consulting: Jan. 1 Sheila finds an investor to give her $50,000 to start her consulting practice Jan. 3 She pays $1,000 to rent office space Jan. 6 She purchases a laptop and printer for $2,000 on account. Jan. 8 She performs consulting services for cash - $1,500. | Jan. 10 She borrows $700 cash from bank on a 2-year note payable. Jan. 14 She performs services on account - $2,000. Jan. 18 She pays monthly telephone expense- $800. Jan. 24 She collects $1,000 from client from Jan. 14 above. Jan. 30 She pays a $1,000 dividend to the investor. Equip Accounts Receivable Cash

Answer 1

T-Accounts:

Jan. 14 Accounts Receivable $2,000 Jan. 24 $1,000 Jan. 1 Jan. 8 Jan. 10 Jan. 24 Cash $50,000 Jan. 3 $1,500 Jan. 18 $700 Jan. 30 $1,000 $1,000 $800 $1,000 Jan. 30 $1,000 $2,000 $2,000 Jan. 30 $50,400 $53,200 $53,200 Jan. 6 Laptop & Printer $2,000 Jan. 30 $2,000 Accounts Payable $2,000 Jan. 6 $2,000 $2,000 Jan. 30 $2,000 Capital Stock $50,000 Jan. 1 $50,000 $2,000 $50,000 $50,000 Rent Expense $1,000 Jan. 30 $2,000 Service Revenue $3,500 Jan. 8 Jan. 14 Jan. 30 $1,500 $2,000 Jan. 3 $1,000 $1,000 $3,500 $3,500 Dividends $1,000 Jan. 30 Jan. 30 Jan. 30 $1,000 $1,000 Notes payable $700 Jan. 10 $700 Telephone Expenses $800 Jan. 30 $800 $700 $700 $1,000 $1,000 Jan. 18 $800 $800