Question

Exercise 3-01 Kimberly 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 $34,620 cash and equipment valued at $15,500 in the business. 2 Hired an administrative assistant at a salary of $299 per week payable monthly 3 Purchased supplies on account $771. (Debit an asset account.) 7 Paid office rent of $663 for the month. 11 Completed a tax assignment and billed client $1,202 for services rendered. (Use Service Revenue account.) 12 Received $2,679 advance on a management consulting engagement. 17 Received cash of $2.580 for services completed for Ferengi Co 21 Paid insurance expense $118. 30 Paid administrative assistant $1,196 for the month. 30 A count of supplies indicated that $131 of supplies had been used. 30 Purchased a new computer for $6,293 with personal funds. (The computer will be used exclusively for business purposes.) Journalize the transactions in the general journal. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.)

Answer 1

Journal entry

Date	account and explanation	Debit	Credit
Apr 2	Cash	34620
	Equipment	15500
	Owner's equity		50120
Apr 2	No entry
Apr 3	Supplies	771
	Account payable		771
Apr 7	Rent expense	663
	Cash		663
Apr 11	Account receivable	1202
	Service revenue		1202
Apr 12	Cash	2679
	Deferred service revenue		2679
Apr 17	Cash	2580
	Service revenue		2580
Apr 21	Insurance expense	118
	Cash		118
Apr 30	Salaries expense	1196
	Cash		1196
Apr 30	Supplies expense	131
	Supplies		131
Apr 30	Computer	6293
	Owner's equity		6293