Question

Prepare April Journal Entries as T accounts and Regular Journal entries. Don’t forget descriptions and date. JTT is a licensed CPA. During the first month of operations of her business, the following events and transactions occurred. a) April 2, Invested $73,600 cash and equipment valued at $32,200 in the business. b) April 2, Hired a secretary-receptionist at a salary of $667 per week, payable monthly. c) April 3, Purchased supplies on account $1,610. (Debit an asset account.) d) April 7, Paid office rent of $1,380 for the month. e) April 11 Completed a tax assignment and billed client $2,530 for services rendered. (Use Service Revenue account.) f) April 12 Received $7,360 advance on a management consulting engagement. g) April 17 Received cash of $5,290 for services completed for Calunga Co. h) April 21 Paid insurance expense $253. i) April 30 Paid secretary-receptionist $2,668 for the month. j) April 30 A count of supplies indicated that $276 of supplies had been used. k) April 30 Purchased a new computer for $14,030 with personal funds. (The computer will be used exclusively for business purpos

Answer 1

In the books of JTT, CPA:

Transaction / Event	Date	Account Titles and Explanations	Debit	Credit
			$	$
a.	April 2	Cash	73,600
		Equipment	32,200
		JTT, Capital		105,800
		To record introduction of capital by proprietor
b.	April 2	No journal entry required	0	0
c.	April 3	Supplies	1,610
		Accounts Payable		1,610
		To record purchase of supplies on account
d.	April 7	Rent Expense	1,380
		Cash		1,380
		To record rent expense for April
e.	April 11	Accounts Receivable	2,530
		Service Revenue		2,530
		To record service revenue
f.	April 12	Cash	7,360
		Unearned Service Revenue		7,360
		To record advance receipts for services to be performed
g.	April 17	Cash	5,290
		Service Revenue		5,290
		To record service revenue
h.	April 21	Insurance Expense	253
		Cash		253
		To record insurance expense for April
i.	April 30	Salaries Expense	2,668
		Cash		2,668
		To record payment of salaries for April
j.	April 30	Supplies Expense	276
		Supplies		276
		To record supplies expense for the month
k.	April 30	Computer Equipment	14,030
		JTT, Capital		14,030
		To record further introduction of capital by proprietor