Question

Vera Ernst is a licensed dentist. During the first month of the operation of her business, the following events and transactions occurred. 

April 1 Invested $ 19,000 cash in her business.

1 Hired a secretary-receptionist at a salary of $ 500 per week payable monthly.

2 Paid office rent for the month $ 1,200.

3 Purchased dental supplies on account from Dazzle Company $ 4,600.

10 Performed dental services and billed insurance companies $ 4,500.

11 Received $ 1,000 cash advance from Leah Mataruka for an implant.

20 Received $ 2,100 cash for services performed from Michael Santos.

30 Paid secretary-receptionist for the month $ 2,000.

30 Paid $ 2,960 to Dazzle for accounts payable due.

Answer 1

Date	Account Titles and Explanation	Debit	Credit
1-Apr	Cash	$          19,000
	Vera Ernst, Capital		$          19,000
	[Owner's investment of cash in business]
1-Apr	No entry required as no payment is made
	[Hired a secretary-receptionist]
2-Apr	Rent expense	$            1,200
	Cash		$             1,200
	[Paid monthly office rent]
3-Apr	Dental supplies	$            4,600
	Accounts payable		$             4,600
	[Purchased supplies on account from Dazzle Company]
10-Apr	Accounts receivable	$            4,500
	Service revenue		$             4,500
	[Billed clients for services performed]
11-Apr	Unearned service revenue	$            1,000
	Cash		$             1,000
	[Received cash for future service]
20-Apr	Cash	$            2,100
	Service revenue		$             2,100
	[Received cash for services performed]
30-Apr	Wages and salaries	$            2,000
	Cash		$             2,000
	[Paid monthly salary]
30-Apr	Accounts payable	$            2,960
	Cash		$             2,960
	[Paid Dazzle Company on account]