Question

For the past several years, Samantha Hogan has operated a part-time consulting business from her home. As of July 1, 20Y9, Samantha decided to move to rented quarters and to operate the business, which was to be known as Arborvite Consulting, on a full-time basis. Arborvite Consulting entered into the following transactions during July: Jul. 1 1 2 The following assets were received from Samantha Hogan: cash, $25,700; accounts receivable, $30,200; supplies, $5,100; and office equipment, $12,100. There were no liabilities received. Paid three months' rent on a lease rental contract, $8,100. Paid the premiums on property and casualty insurance policies, $6, 100. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $10,800. Purchased additional office equipment on account from Office Necessities Co., $6,900. 3 5 6 Received cash from clients on account, $17,300. 10 12 Pald cash for a newspaper advertisement, $680. Paid Office Necessities Co. for part of the debt incurred on July 5, $4,100. Provided services on account for the period July 1-12, $19,200. Paid receptionist for two weeks' salary, S2,000. 12 14 Record the following transactions on Page 2 of the journal: Jul. 17 18 20 24 26 Received cash from cash clients for fees earned during the period July 1-17, $14,100. Paid cash for supplies, $1,400. $. Provided services on account for the period July 13-20. $12,200. . Received cash from cash clients for fees eamed for the period July 17-24, $11,500. Received cash from clients on account, $16,300. . Paid receptionist for two weeks' salary, $2,000. Paid telephone bill for July. $440. Paid electricity bill for July, 1910. Received cash from cash clients for fees earned for the period July 25–31, $9,600. Provided services on account for the remainder of July, $7,400. 27 29 31 31 31

Answer 1

Arborvite Consulting Journal for the Month of July Date Particulars Ledger Folio Debit Credit Dr. 2019 01-Jul Cash A/C Accounts Receivable Supplies Office Equipment To Samantha Hogan Capital A/C Dr. Dr. Dr. 1 2 3 $ 25,700 $ 30,200 $ 5,100 $ 12,100 4 5 $ 73,100 6 01-Jul Rental Charges Prepaid Expenses To Cash A/C Dr. Dr. $ 2,700 $5,400 7 1 Month Next 2 Months $ 8,100 1 02-Jul Insurance Expired Insurance Premium Prepaid Expenses To Cash A/C Dr. Dr. $ 510 $5,590 7 1 $ 6,100 Dr. 1 $ 10,800 03-Jul Cash A/C To Unearned Fees 9 $ 10,800 Dr. 4 $6,900 05-Jul Office Equipment To Office Necessities Co. 10 $ 6,900 Dr. 1 $ 17,300 06-Jul Cash A/C To Unearned Fees 9 $ 17,300 Dr. 11 $ 680 10-Jul Newspaper Advertisement To Cash A/C 1 $ 680 Dr. 10 $4,100 12-Jul Office Necessities Co. To Cash A/C 1 $ 4,100 Dr. $ 19,200 12-Jul Accounts Receivable To Fees Earned 2 12 $ 19,200 Dr. 13 $ 2,000 14-Jul Salary Expense To Cash A/C 1 $ 2,000 Dr. 1 $ 14,100 17-Jul Cash A/C To Accounts Receivable 2 $ 14,100 Dr. $1,400 18-Jul Supplies To Cash A/C 3 1 $ 1,400 20-Jul Dr. 2 $ 12,200 Accounts Receivable To Fees Earned 12 $ 12,200 Dr. 1 $ 11,500 24-Jul Cash A/C To Accounts Receivable 2 $ 11,500 Dr. $ 16,300 26-Jul Cash A/C To Unearned Fees 1 9 $ 16,300 Dr. 13 $ 2,000 27-Jul Salary Expense To Cash A/C 1 $ 2,000 Dr. 14 $ 440 29-Jul Telephone Expense To Cash A/C 1 $ 440 Dr. 15 $ 910 31-Jul Electricity Expense To Cash A/C 1 $ 910 31-Jul Dr. 1 $9,600 Cash A/C To Accounts Receivable 2 $ 9,600 Dr. 2 $ 7,400 31-Jul Accounts Receivable To Fees Earned 12 $ 7,400 Dr. $ 27,100 31-Jul Samantha Hogan Drawing A/C To Cash A/C 16 1 $ 27,100 ADJUSTING ENTRIES Dr. 17 $ 2,600 31-Jul Supplies Expense To Supplies (6500 - 3900) $ 2,600 3 Dr. 18 $ 540 31-Jul Depreciation To Office Equipment 4 $ 540 Dr. 13 $ 190 31-Jul Salary Expense To Accrued Salary 19 $ 190 Dr. 9 $ 40,300 31-Jul Unearned Fees To Fees Earned 12 $ 40,300

BEFORE MAKING ADJUSTMENT ENTRIES:

Arborvite Consulting Unadjusted Trial Balance for the Month of July 2049 Particulars L.F. Debit Credit 1 2 3 $ 52,470 $ 33,800 $ 6,500 $ 19,000 4 5 $ 73,100 6 7 $ 2,700 $ 10,990 $ 510 Cash A/C Accounts Receivable Supplies Office Equipment Samantha Hogan Capital A/C Rental Charges Prepaid Expenses Insurance Premium Unearned Fees Office Necessities Co. Newspaper Advertisement Fees Earned Salary Expense Telephone Expense Electricity Expense Samantha Hogan Drawing A/C 9 10 $ 44,400 $ 2,800 11 $ 680 000 m2 $ 38,800 $ 4,000 $ 440 $ 910 $ 27,100 TOTAL $ 159,100 $ 159,100

AFTER ADJUSTMENTS:

Arborvite Consulting Adjusted Trial Balance for the Month of July 2049 Particulars L.F. Debit Credit 1 Nm $ 52,470 $ 33,800 $ 3,900 $ 18,460 4 5 $ 73,100 6 7 $ 2,700 $ 10,990 $ 510 8 Cash A/C Accounts Receivable Supplies Office Equipment Samantha Hogan Capital A/C Rental Charges Prepaid Expenses Insurance Premium Unearned Fees Office Necessities Co. Newspaper Advertisement Fees Earned Salary Expense Telephone Expense Electricity Expense Samantha Hogan Drawing A/c Supplies Expense Depreciation Accrued Salary 9 10 $ 4,100 $ 2,800 11 $ 680 12 $ 79,100 13 14 15 $ 4,190 $ 440 $ 910 $ 27,100 $ 2,600 $ 540 16 17 18 19 $ 190 TOTAL $ 159,290 $ 159,290