Question

PRINTER VERSION BACK NEXT Exercise 3-01 Beverly Crusher is a licensed CPA. During the first month of operations of her business Casole proprietorship, the following events and transactions corred 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 p able monthly 3 Purchased supplies on account $700. (Debit an asset account.) 7 Pald office rent of $600 for the month. 11 Completed a tax assignment and billed dient $1,100 for services rendered Service Revenue account 12 Received $3,200 advance on a management consulting engagement 17 Received cash of $2,100 for services completed for Ferenc 21 Paid Insurance expense $110. 30 Paid administrative assistant $1.100 for the month 30 A count of supplies indicated that $120 of supplies had been used 30 Purchased a new computer for $0,100 with personal funds. The computer will be used exclusively for business purposes.) Journalize the transactions in the general Journal (Credit account titles and automatically indented when amountsevitendnot indenta lly. If required, select No entry for the account titles and enter for the amounts Record formal entries in the order presented in the problem.) entry is Date Acount Titles and Explanation Debit e to search o @* 9 WO E ⓇAGE

Answer 1

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Date Credit Beverly Crusher General Journal For the Month eding April 30 Account Title and Explanation Debit Apr-02 Cash $ 32,000.00 Equipment $ 14,000.00 Capital (to record introduction of capital in the form of cash and equipment) $ 46,000.00 Apr-02 No Entry for Hiring an Administrative Assistant - Not a financial transaction Note 1 700.00 Apr-03 Supplies Account Payable (to record purchase of supplies on account) 700.00 600.00 Apr-07 Rent Expenses Cash (to record rent expenses) 600.00 $ 1,100.00 Apr-11 Accounts receivables Service Revenue (to record bill raised for services rendered) $ 1,100.00 $ 3,200.00 Apr-12 Cash Unearned Revenue (to records receipt of advance) $ 3,200.00 $ 2,300.00 Apr-17 Cash Service Revenue $ 2,300.00 $ 110.00 Apr-21 Insurance Expenses Cash (to record insurance expense) $ 110.00 $ 1,160.00 Apr-30 Salary Expenses Cash (to record salary paid to administrative assistant). $ 1,160.00 120.00 Apr-30 Supplies Expenses Supplies (to records expenses in respect of supplies consumed) $ 120.00 $ 6,100.00 Note 2 Apr-30 Computer Capital (to records purchase of computer from personal funds) 6,100.00 Note 1 - Appointing Administrative Assistant is not a financial transaction in itself and we records only finacial transaction Note 2 - Since computer has been purchased from personal funds, it is as good as introduction of capital.