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 1 2 3 10 Invested $22,000 cash in her business. Hired a secretary-receptionist at a salary of $700 per week payable monthly. Paid office rent for the month $1,000. Purchased dental supplies on account from Dazzle Company $3,900. Performed dental services and billed insurance companies $5,000. Received $1,500 cash advance from Leah Mataruka for an implant. Received $2,200 cash for services performed from Michael Santos. Paid secretary-receptionist for the month $2,800. Paid $2,540 to Dazzle for accounts payable due. 11 20 30 30

Answer 1

Credit Date April 1 Account Titles and Explanation Cash Owner's Equity (Owner's Investment of Cash in Business) Debit $22,000 $22,000 April 1 No Entry (Hired a Secretary - Receptionist) April 2 $1,000 Rent Expense Cash (Paid monthly office rent) $1,000 April 3 $3,900 $3,900 Supplies Accounts Payable - Dazzle Company (Purchased Supplies on account from Dazzle Company) April 10 $5,000 Accounts Receivable - Insurance Company Service Revenue (Billed Client for Services Performed) $5,000 April 11 $1,500 Cash Unearned Revenue (Received Cash for Future Services) $1,500 April 20 $2,200 Cash Service Revenue (Received Cash for Services Performed) $2,200 April 30 $2,800 Salary Expense Cash (Paid monthly salary) $2,800 April 30 $2,540 Accounts Payable - Dazzle Company Cash (Paid Dazzle Company on account) $2,540