Question

ournalize transactions, post, and prepare a trial balance.

(LO 1, 2, 3, 4)

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

April	1	Invested $20,000 cash in her business.
	1	Hired a secretary-receptionist at a salary of $700 per week payable monthly.
	2	Paid office rent for the month $1,100.
	3	Purchased dental supplies on account from Dazzle Company $4,000.
	10	Performed dental services and billed insurance companies $5,100.
	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 $2,800.
	30	Paid $2,400 to Dazzle for accounts payable due.

Emily uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 301 Owner's Capital, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.

Instructions

(a)  

Journalize the transactions.

Answer 1

Answer:

a) The journal entries are prepared as below:

Date	Account Titles	Ref.	Debit	Credit
Apr 01	Cash	101	$20,000
	Owner's Capital	301		$20,000
Apr 01	No Entry Needed
Apr 02	Rent Expense	729	$1,100
	Cash	101		$1,100
Apr 03	Supplies	126	$4,000
	Accounts Payable	201		$4,000
Apr 10	Accounts Receivable	112	$5,100
	Service Revenue	400		$5,100
Apr 11	Cash	101	$1,000
	Unearned Service Revenue	209		$1,000
Apr 20	Cash	101	$2,100
	Service Revenue	400		$2,100
Apr 30	Salaries and Wages Expense	726	$2,800
	Cash	101		$2,800
Apr 30	Accounts Payable	201	$2,400
	Cash	101		$2,400