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.)

Answer 1

		Debit	Credit
Apr. 2	Cash	32000
	Equipment	14000
	Owner's Capital		46000
Apr. 2	No Entry	0
	No Entry		0
Apr. 2	Supplies	700
	Accounts Payable		700
Apr. 7	Rent Expense	600
	Cash		600
Apr. 11	Accounts Receivable	1100
	Service Revenue		1100
Apr. 12	Cash	3200
	Unearned Service Revenue		3200
Apr. 17	Cash	2300
	Service Revenue		2300
Apr. 21	Insurance Expense	110
	Cash		110
Apr. 30	Salaries and Wages Expense	1160
	Cash		1160
Apr. 30	Supplies Expense	120
	Supplies		120
Apr. 30	Equipment	6100
	Owner’s Capital		6100