Question

Beverly 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 $32,000 cash and equipment valued at $14,000 in the business.

2
Hired an administrative assistant at a salary of $290 per week payable monthly.

3
Purchased supplies on account $700. (Debit an asset account.)

7
Paid office rent of $600 for the month.

11
Completed a tax assignment and billed client $1,100 for services rendered. (Use Service Revenue account.)

12
Received $3,200 advance on a management consulting engagement.

17
Received cash of $2,300 for services completed for Ferengi Co.

21
Paid insurance expense $110.

30
Paid administrative assistant $1,160 for the month.

30
A count of supplies indicated that $120 of supplies had been used.

30
Purchased a new computer for $6,100 with personal funds. (The computer will be used exclusively for business purposes.)

Instructions

Create a T Account and a Trial Balance

Answer 1

Answers Neparation of Journal Entries Beverly Crusher Journal Entries Date Get 62 Apr. 2/ Cash Ak - Party was DY, I Debit (22. 32000 14000 - 01. 46000 Equipment Alc То («pl 41 A/с being cash and equipment invested in a bysiness) Apia No Entry 700 700 600 600. Joo doo (Because this not a transaction. when Beverly Cryshev will pay salary then such will be recorded) Apr.3 Supplies Ale - - Dr. To Accounts Payable Alc (Being supplies purchased on account) Apt. Office Rent Expense Ale — A To cash Ale (Being office rent paid for the month) Aprill Accounts Receivable Alc. To service Revenue Ale (Being services rendered on credit and billed to customcy) I Cash Alc - - To uneained Revenue Ale (Being advance money received for service rendering) - Over To Sevuſce fevenue Als (Being service renteved and cost receivel) For-21 Insurance Expense Alc on To Cash Ale | (Being insurance expense paid - Ori 3200 3200 (Apr.12 2300 9sh Ale 2305 Apr 17 llo.

Ap.301 Apr jo supplies Ex Salary Expense Ala- To cash Ale Being salquy paid to assisstant) Supplies Expense Alc To supplies Ale Being Supplies on hand recorded) Apr.30 Equipment Ale – 61390 To capital Ale (Being asset invested in the business) Total Ledger (T- Accounts) Geityl Account To Balance old 52100 Apr. 1 | By Gth Ale Apr.1 By Equipment Al Ap1-30 By Equipment. Als computer) 32000 Apr.30 14000 6100 52100 Equipment Als Apr.30 By Balance cld 20100 April Apr 30 To Capital Ale To Capital Al (computer) 14000 6100 20100 2010o supplies Als 700 To Accounts Payable Ale Ars Apr. 30 Agr. 30 y Supplies Expense By Balance eld . 700

Accounts payable Ale 700 Apr.s'o To Balance cld 700 apr.3 By Suppljes Ale 700 700 Office Rent Expense Aka 600 Apr. 30 By Balance all 60o Aprit | To cash Ak COS 600 Accounts Receivable Ale 1100 Mpx.50By Balance eld 1100 Aprill to sewujne Revenue Ale 100 Uneanned Revenue Ale | Aporn 3200 3200 By Cash Ale Apr. 30 To Balance old 3200 3200 Service Revenue Ale 3400 Aprill By Accounts Receivable | Apr. 17 By Gih Ale Apr. 3o To Balance cld 1100 2300 3400 360o

Tormance Expenje I llo Apt. To cash Al Apr.go Oy Balogue cll TO Salary Expense Alc 1160 Apr 30 | By Balance old 1160 - Ap. To cash Ale 1160 1160 Supplies Expenie Ale [20 Apr.30 | By Balance eld 120 Aprise To Supplies Ale 120 600 Gsh Alc Apri7 | By office pent Expense Apr.211 By Insurance Expense 230° | Арт. зе[ кqlvy Expepit Apr. 30 | By Balance of Api 2 To Capital Al Alto Unearnel Revenue Ale Agu 17 T alee Revenue Ale 3200 110 11160 35630 137500 3700

Trial Balance درواfqvhjw Amt (8) Amt: 52100 20100 580 700 600 Gpital: Equipment Supplies Accounts Payable office Rent Expense Accounts Receivable Uneaned Revenue Service Revenue Insyrance Expense Salavy Expense Supplies Expense 1100 3200 3400 llo 1160 120 35630 Cash 5940 0 59400