Question

Project 1 RI For the past several years, Aaron Jones has operated a consulting business from his home on part-time basis. As of December 1, 20x1, Aaron decided to meve to rented quarters and incorpcrate his business as Progress Consulting Inc. Progress Consulting entered into the following transactions during December 12/1 Aaron Jones invested the following assets in the business: cash, $50,000; supplies, $8,000: and office equipment, S45,000 Mr·Jones received stock in an amount equal to his investment in the corporation. 12/2 Paid $9,000 for rent for December 20X3 through February 28, 20X2 Pald $0,800 fer a one year premium on property and casualty insurance. The policy covers the period December1, 20x to November 30, 20X2 12/4 Received $12,000 cash from a client as an advance payment for services to be performed in the future 12/5 Purchased adcitional office equipment on account from Payne Company for $15,000 12/10 Paid $6,500 for a newspaper advertisement that ran in today's paper 12/11 Paid Payne Company $4,000 for part of the debt incurred on December 5 2/12 Billed clients for services performed on account, $5,000 12/17 Received cash payment from client for services performed on this date, $15,000 12/18 Paid $6,000 for supplies 12/20 Billed clients for services performed on account, $16,000 12/24 Received cash payment from client for services performed on this date, $2,000 12/25 Received cash from clients as payment on account, $3,000. 12/30 Paid $800 fer utilties fer December 12/31 Paid cash dividend of $6,000 (a) Prepare Journal Entries Your answer is partially correct. Try again. Journalize each of the above transactions. (Credit account titles are automatically Indented when the amount is entered. Do not indent manualy, Record journal entries in the order presented in the Date Account Titles and Explanation Debit 12/1 I Cash 0,800

Answer 1

Answer a.
Journal Entry
Date	Particulars	Dr. Amt.	Cr. Amt.
1-Dec	Cash	50,000.00
	Supplies	8,000.00
	Office Equipment	45,000.00
	Common Stock		103,000.00
2-Dec	Prepaid Rent	9,000.00
	Cash		9,000.00
3-Dec	Prepaid Insurance	10,800.00
	Cash		10,800.00
4-Dec	Cash	12,000.00
	Unearned Service Revenue		12,000.00
5-Dec	Office Equipment	15,000.00
	Accounts Payable		15,000.00
10-Dec	Advertisement Expense	6,500.00
	Cash		6,500.00
11-Dec	Accounts Payable	4,000.00
	Cash		4,000.00
12-Dec	Accounts Receivable	5,000.00
	Service Revenue		5,000.00
17-Dec	Cash	15,000.00
	Service Revenue		15,000.00
18-Dec	Supplies	6,000.00
	Cash		6,000.00
20-Dec	Accounts Receivable	16,000.00
	Service Revenue		16,000.00
24-Dec	Cash	2,000.00
	Accounts Receivable		2,000.00
25-Dec	Cash	3,000.00
	Accounts Receivable		3,000.00
30-Dec	Utilities Expense	800.00
	Cash		800.00
31-Dec	Dividends	6,000.00
	Cash		6,000.00

Answer b.
Cash						Accounts Receivable
Date	Debit	Credit	Balance			Date	Debit	Credit	Balance
1-Dec	50,000.00		50,000.00	Dr.		12-Dec	5,000.00		5,000.00	Dr.
2-Dec		9,000.00	41,000.00	Dr.		20-Dec	16,000.00		21,000.00	Dr.
4-Dec	12,000.00		53,000.00	Dr.		25-Dec		3,000.00	18,000.00	Dr.
10-Dec		6,500.00	46,500.00	Dr.
11-Dec		4,000.00	42,500.00	Dr.
17-Dec	15,000.00		57,500.00	Dr.		Office Equipment
18-Dec		6,000.00	51,500.00	Dr.		Date	Debit	Credit	Balance
24-Dec	2,000.00		53,500.00	Dr.		1-Dec	45,000.00		45,000.00	Dr.
25-Dec	3,000.00		56,500.00	Dr.		5-Dec	15,000.00		60,000.00	Dr.
30-Dec		800.00	55,700.00	Dr.
31-Dec		6,000.00	49,700.00	Dr.		Accounts Payable
						Date	Debit	Credit	Balance
Prepaid Rent						5-Dec		15,000.00	15,000.00	Cr.
Date	Debit	Credit	Balance			11-Dec	4,000.00		11,000.00	Cr.
2-Dec	9,000.00		9,000.00	Dr.
						Common Stock
Supplies						Date	Debit	Credit	Balance
Date	Debit	Credit	Balance			1-Dec		103,000.00	103,000.00	Cr.
1-Dec	8,000.00		8,000.00	Dr.
18-Dec	6,000.00		14,000.00	Dr.
						Dividends
Unearned Revenue						Date	Debit	Credit	Balance
Date	Debit	Credit	Balance			31-Dec	6,000.00		6,000.00	Dr.
4-Dec		12,000.00	12,000.00	Cr.
						Utilities Expense
						Date	Debit	Credit	Balance
Service Revenue						30-Dec	800.00		800.00	Dr.
Date	Debit	Credit	Balance
12-Dec		5,000.00	5,000.00	Cr.
17-Dec		15,000.00	20,000.00	Cr.
20-Dec		16,000.00	36,000.00	Cr.
24-Dec		2,000.00	38,000.00	Cr.
Advertising Expense
Date	Debit	Credit	Balance
10-Dec	6,500.00		6,500.00	Dr.

Answer c.
Progress Consulting Inc.
Unadjusted Trial Balance
As of De 31, 20X1
	Debit	Credit
Balance Sheet Accounts:
Cash	49,700.00
Accounts Receivable	18,000.00
Prepaid Rent	9,000.00
Supplies	14,000.00
Office Equipment	60,000.00
Accounts Payable		11,000.00
Unearned Revenue		12,000.00
Common Stock		103,000.00
Dividends	6,000.00
Service Revenue		38,000.00
Utilities Expense	800.00
Advertising Expense	6,500.00
Totals	164,000.00	164,000.00

Answer d.
Adjusting Journal entry
Date	Particulars	Dr. Amt.	Cr. Amt.
a.	Insurance Expense	900.00
	Prepaid Insurance		900.00
b.	Supplies Expense	9,600.00		$14,000 - $4,400
	Supplies		9,600.00	$14,000 - $4,400
c.	Depreciation Expense	1,000.00
	Accumulated Depreciation - Office Equip.		1,000.00
d.	Rent Expense	3,000.00
	Prepaid Rent		3,000.00
e.	Unearned Revenue	3,000.00
	Service Revenue		3,000.00
f.	Salaries & Wage Expense	1,200.00
	Salaries & Wages Payable		1,200.00
g.	Accounts Receivable	2,200.00
	Service Revenue		2,200.00