Beverly Crusher is a licensed CPA. During the first month of operations of her b
ID: 2484951 • Letter: B
Question
Beverly Crusher is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following events and transactions occurred. April 2 Invested $32,000 cash and equipment valued at $14,000 in the business. 2 Hired a secretary-receptionist at a salary of $290 per week payable monthly. 3 Purchased supplies on account $700. (Debit an asset account.) 7 Paid office rent of $600 for the month. 11 Completed a tax assignment and billed client $1,100 for services rendered. (Use Service Revenue account.) 12 Received $3,200 advance on a management consulting engagement. 17 Received cash of $2,300 for services completed for Ferengi Co. 21 Paid insurance expense $110. 30 Paid secretary-receptionist $1,160 for the month. 30 A count of supplies indicated that $120 of supplies had been used. 30 Purchased a new computer for $6,100 with personal funds. (The computer will be used exclusively for business purposes.) Journalize the transactions in the general journal. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Apr. 2 Apr. 2 Apr. 3 Apr. 7 Apr. 11 Apr. 12 Apr. 17 Apr. 21 Apr. 30 Apr. 30 Apr. 30
Explanation / Answer
Answer:
Journal entries:
Date
Explanation
Debit
Credit
April 2
Cash Dr.
32000
Equipment Dr.
14000
To owner’s capital
46000
April 2
No entry
0
0
April 3
Supplies Dr.
700
To accounts payable
700
April 7
Rent Expense Dr.
600
To cash
600
April 11
Accounts receivable Dr.
1100
To revenue
1100
April 12
Cash dr.
3200
To unearned revenue
3200
April 17
Cash Dr.
2300
To revenue
2300
April 21
Insurance expense Dr.
110
To cash
110
April 30
Salaries expense Dr.
1160
To cash
1160
April 30
Supplies expense Dr.
120
To supplies
120
April 30
Equipment Dr.
6100
To capital
6100
Date
Explanation
Debit
Credit
April 2
Cash Dr.
32000
Equipment Dr.
14000
To owner’s capital
46000
April 2
No entry
0
0
April 3
Supplies Dr.
700
To accounts payable
700
April 7
Rent Expense Dr.
600
To cash
600
April 11
Accounts receivable Dr.
1100
To revenue
1100
April 12
Cash dr.
3200
To unearned revenue
3200
April 17
Cash Dr.
2300
To revenue
2300
April 21
Insurance expense Dr.
110
To cash
110
April 30
Salaries expense Dr.
1160
To cash
1160
April 30
Supplies expense Dr.
120
To supplies
120
April 30
Equipment Dr.
6100
To capital
6100
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