Question

Instructions For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 20Y2, Steffy decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a full-time basis. Diamond entered into the following transactions during July: Jul. 1. The following assets were received from Steffy Lopez in exchange for common stock: cash, $14,000; accounts receivable, $20,800; supplies, $3,100; and office equipment, $7,000. There were no liabilities received. 2 . Paid two months' rent on a lease rental contract, $6.000. Paid the premiums on property and casualty insurance policies, $4,620. 5 Received cash from clients as an advance payment for services to be provided, and recorded it as unearned fees. $5,000. Purchased additional office equipment on account from Office Station Co.. $6,500. Received cash from clients on account, $15.000.

Answer 1

JOURNAL ENTRIES IN THE BOOKS OF DIAMOND CONSULTING
DATE	PARTICULARS	DEBIT ($)	CREDIT ($)
PAGE 1
Jul-01	CASH A/C	$14,000.00
	ACCOUNT RECEIVABLE A/C	$20,800.00
	SUPPLIES A/C	$3,100.00
	OFFICE EQUIPMENT A/C	$7,000.00
	TO SHARE CAPITAL A/C		$44,900.00
Jul-02	LEASE RENT A/C	$6,000.00
	TO CASH A/C		$6,000.00
Jul-04	CASH A/C	$5,000.00
	TO UNEARNED FEES A/C		$5,000.00
Jul-05	OFFICE EQUIPMENT A/C	$6,500.00
	TO OFFICE STATION CO.		$6,500.00
Jul-06	CASH A/C	$15,000.00
	TO ACCOUNT RECEIVABLE A/C		$15,000.00
Jul-10	ADVERTISEMENT EXPENSE A/C	$400.00
	TO CASH A/C		$400.00
Jul-12	OFFICE STATION CO.	$5,200.00
	TO CASH A/C		$5,200.00
Jul-12	ACCOUNT RECEIVABLE A/C	$13,300.00
	TO SERVICE REVENUE A/C		$13,300.00
Jul-14	SALARY A/C	$1,750.00
	TO CASH A/C		$1,750.00
PAGE 2
Jul-17	CASH A/C	$9,450.00
	TO SERVICE REVENUE		$9,450.00
Jul-18	SUPPLIES A/C	$600.00
	TO CASH A/C		$600.00
Jul-20	ACCOUNT RECEIVABLE A/C	$6,750.00
	TO SERVICE REVENUE A/C		$6,750.00
Jul-24	CASH A/C	$4,500.00
	TO SERVICE REVENUE A/C		$4,500.00
Jul-26	CASH A/C	$12,000.00
	TO ACCOUNT RECEIVABLE A/C		$12,000.00
Jul-27	SALARY A/C	$1,750.00
	TO CASH A/C		$1,750.00
Jul-29	TELEPHONE EXPENSE A/C	$375.00
	TO CASH A/C		$375.00
Jul-31	ELECTRICITY EXPENSE A/C	$675.00
	TO CASH A/C		$675.00
Jul-31	CASH A/C	$5,000.00
	TO SERVICE REVENUE A/C		$5,000.00
Jul-31	ACCOUNT RECEIVABLES A/C	$3,000.00
	TO SERVICE REVENUE A/C		$3,000.00
Jul-31	DIVIDEND A/C	$12,500.00
	TO CASH A/C		$12,500.00