Mary Ann Powers decided to go into business as a sole proprietor and established
ID: 2427308 • Letter: M
Question
Mary Ann Powers decided to go into business as a sole proprietor and established MAP Computer Consulting Services on October 01, 2010. Listed below are the transactions that took place during the month of October.
10/01 She opened a business checking account (bank) with a deposit of $25,000 from her personal account.
10/02 She purchased computer supplies for $1,500, paying for all of it by check from the business checking account.
10/03 She provided services to ABC Inc. and received payment of $795 for services rendered.
10/05 She paid rent for the company’s office space for the month ($900).
10/10 She paid office salaries ($2,100).
10/11 She billed customers for services provided on account ($17,000).
10/15 She purchased computer supplies for $3,000, paying $750 in cash and the rest on account.
10/16 She paid automobile expenses of $250 and miscellaneous expenses of $100.
10/20 She paid creditors on the account ($500).
10/25 She received a cash payment of $5,000 from customers previously billed (on account).
10/31 She determined that the cost of supplies available on hand at the end of the month is $2,500; therefore, the cost of supplies used was $2,000.
10/31 Mary Ann Powers withdrew cash for personal use ($1,000).
Instructions:
Journalize the transactions above using the form provided.
Date
Description
Debit
Credit
Date
Description
Debit
Credit
Explanation / Answer
Journal entries
Date Description Debit Credit 10/1 Cash 25,000 To Capital 25,000 10/2 Supplies 1,500 To cash 1,500 10/3 Cash 795 To Service fees 795 10/5 Rent expense 900 to Cash 900 10/10 Office Salaries 2,100 Cash 2,100 10/11 Account receivable 17,000 To Service fee 17,000 10/15 Computer supplies 3,000 To cash 750 to Accounts payable 2250 10/16 Automobile expense 250 Miscellaneous expense 100 To Cash 350 10/20 Account payable 500 To Cash 500Related Questions
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