Question

Vera Ernst is a licensed dentist. During the first month of the operation of her business, the following events and transactions occurred. April i 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 $1,500. 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 Pald secretary-receptionist for the month $2,500. 30 Paid $2,600 to Dazzle for accounts payable due

Answer 1

solution Date Account title & Explanation Debit Credit | Apr 1 20000 20000 | Apra o Apr 2 cash To Vera Ernst, • Capital [To record cash bought in to company 1 No entry required Rent Expense To cash | To record monthly office rent] Supplees To Accounts payable [To record purchase made] 1500 1500 Apr3 4000 4000 HAMID Accounts receivable 5100 To service Revenue 5100 [To record Billed thent for services performed Apr 11 cash 1000 To unearned service Revenue 1000 [To record Unearned Seavice Revenue]

Apr 20 cash 2100 To service Revenue 2100 [ To record service Revenue 2800 Apr 30 salaries Expense . To cash To record monthly salary] 2800 [ Accounts payable 2600 Apr 30 To cash 2600 Г- [to To recoed Accounts payable]