Question

P2.6B (LO 2, 3, 4) AP Kiersted Financial Services was formed on November 1, 2021. During the month of November, the following events and transactions occurred: Nov. 1 Haakon Kiersted, the owner, invested $35,000 cash in the company. He also invested equipment that had originally cost Haakon $25,000 but was currently worth $12.000. 2 Hired one employee to work in the office for a monthly salary of $2,825.

Answer 1

a)

prepare journal entries as follows:

Date	General Journal	Debit	Credit
November
1	Cash	$35,000
	Equipment	$12,000
	Owner's capital		$47,000
2	No entry
3	Prepaid rent	$2,140
	Cash		$2,140
4	Insurance Expense	$4,740
	Cash		$4,740
5	Equipment	$18,000
	Note payable		$12,000
	Cash		$6,000
6	Supplies	$1,550
	Accounts payable		$1,550
7	Supplies	$475
	Cash		$475
16	Cash	$990
	Service revenue		$990
20	Accounts receivable	$4,500
	Service revenue		$4,500
26	Accounts payable	$1,000
	Cash		$1,000
27	Cash	$750
	Unearned service revenue		$750
29	Cash	$2,800
	Accounts receivable		$2,800
30	Interest expense	$60
	Cash		$60
30	Salaries expense	$2,825
	Cash		$2,825
30	Owner's , Drawing	$700
	Cash		$700
30	Owner's , Drawing	$1,150
	Cash		$1,150