Question

Patricia Santos, Certified Public Accountant, operates as a professional corporation, (P.C). The business completed these transactions during the first part of August 2018: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Journalize the transactions. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries.) Aug 2: Received $7,000 cash from Santos, and issued common stock to her. Journal Entry Date Accounts Debit Credit Aug 2 Aug 2: Paid monthly office rent, $600 Journal Entry Date Accounts Debit Credit Aug

Answer 1

Journal entries are as prepared below:

Date	Particulars	L.F	Amount ($)	Amount ($)
Aug-02	Cash		7,000
	Common Stock			7,000
	(For common stock issued)
Aug-02	Rent Expense		600
	Cash			600
	(For rent paid)
Aug-03	Computer		1,200
	Cash			1,200
	(For cash paid for computer)
Aug-04	Office Furniture		4,500
	Accounts Payable			4,500
	(For office furniture purchased)
Aug-05	Supplies		1,100
	Accounts Payable			1,100
	(For supplies purchased)
Aug-09	Cash		1,700
	Service Revenue			1,700
	(For tax services performed)
Aug-12	Utility Expense		1,100
	Cash			1,100
	(For paid for utility expenses)
Aug-18	Account Receivable		1,500
	Service Revenue			1,500
	(For consulting services performed)

Ledger accounts

Cash
Particulars	Amount	Particulars	Amount
Aug-02	7,000	Aug-02	600
Aug-09	1,700	Aug-03	1,200
		Aug-12	1,100
	8,700		2,900
Closing Balance	5,800
Account Receivable
Particulars	Amount	Particulars	Amount
Aug-18	1,500
Closing Balance	1,500
Supplies
Particulars	Amount	Particulars	Amount
Aug-05	1,100
	1,100		0
Closing Balance	1,100
Office Furniture
Particulars	Amount	Particulars	Amount
Aug-04	4,500
Closing Balance	4,500
Computer
Particulars	Amount	Particulars	Amount
Aug-03	1,200
Closing Balance	1,200
Accounts Payable
Particulars	Amount	Particulars	Amount
		Aug-04	4,500
		Aug-05	1,100
		Closing Balance	5,600
Common Stock
Particulars	Amount	Particulars	Amount
		Aug-02	7,000
		Closing Balance	7,000
Service Revenue
Particulars	Amount	Particulars	Amount
		Aug-09	1,700
		Aug-18	1,500
		Closing Balance	3,200
Rent Expense
Particulars	Amount	Particulars	Amount
Aug-02	600
Closing Balance	600
Utilities Expense
Particulars	Amount	Particulars	Amount
Aug-12	1,100
Closing Balance	1,100

Trial Balance

Patricia Santos Certified Public Accountant
Trial Balance
August 18, 2018
	Debit	Credit
Cash	5,800
Account Receivable	1,500
Supplies	1,100
Office Furniture	4,500
Computer	1,200
Accounts Payable		5,600
Common Stock		7,000
Service Revenue		3,200
Rent Expense	600
Utilities Expense	1,100
Total	15,800	15,800