The Accounting Cycle: Nov. 1: Luis Ruiz invests $20,000 to start his own consult
ID: 2551204 • Letter: T
Question
The Accounting Cycle: Nov. 1: Luis Ruiz invests $20,000 to start his own consulting agency. Nov. 1: Purchased a one-year fire insurance policy, $960. Nov. 5: Acquired a computer for $10,000, paying $3,500 down with balance due in 60 days. Nov. 6: Purchased office supplies on account from Taylor Supply, $1,500. Nov.9: Paid Taylor Supply $400 on account. Nov. 10: Billed Barkley Insurance for consulting services performed, $6,000. Nov. 12: Collected $1,500 from Barkley Insurance. Nov. 12: Hired secretary to be paid $600 per week. Nov. 15: Collected $1,000 from Bryant Realty for consulting services to be performed Nov. 26: Paid the secretary two weeks' wages, $1,20o. Nov. 29: Received and paid the November utifity bill, $700 Nov. 30: Received (but did not pay) the November telephone bill, $100 Nov. 30: Performed consulting services for Bing Enterprises,$4,800, to be collected in December. Nov. 30: Ruiz withdrew $1,400 from the business for personal living expenses.Explanation / Answer
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Per Chegg guidelines, 4 sub-parts have been answered.
Date Account Titles and Explanation Debit Credit Nov. 1 Cash 20000 Luis Ruiz, capital 20000 (To record capital invested) Nov. 1 Prepaid insurance 960 Cash 960 (To record insurance purchased) Nov. 5 Computer 10000 Cash 3500 Accounts payable 6500 (To record purchase of computer) Nov. 6 Office supplies 1500 Accounts payable 1500 (To record office supplies purchased on account) Nov. 9 Accounts payable 400 Cash 400 (To record payment on account) Nov. 10 Accounts receivable 6000 Service revenue 6000 (To record service revenue billed) Nov. 12 Cash 1500 Accounts receivable 1500 (To record collection on account) Nov. 12 No entry required Nov. 15 Cash 1000 Unearned service revenue 1000 (To record cash collected in advance) Nov. 26 Wages expense 1200 Cash 1200 (To record payment of wages) Nov. 29 Utilities expense 700 Cash 700 (To record payment of utilities bill) Nov. 30 Telephone expense 100 Accounts payable 100 (To record telephone expense) Nov. 30 Accounts receivable 4800 Service revenue 4800 (To record service revenue earned) Nov. 30 Luis Ruiz, drawings 1400 Cash 1400 (To record cash withdrawn from business)Related Questions
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