Shamrock Crusher is a licensed CPA. During the first month of operations of her
ID: 2607477 • Letter: S
Question
Shamrock 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 $27,070 cash and equipment valued at $12,900 in the business.
2 Hired an administrative assistant at a salary of $255 per week payable monthly.
3 Purchased supplies on account $833. (Debit an asset account.)
7 Paid office rent of $546 for the month.
11 Completed a tax assignment and billed client $1,160 for services rendered. (Use Service Revenue account.)
12 Received $2,589 advance on a management consulting engagement.
17 Received cash of $2,201 for services completed for Ferengi Co.
21 Paid insurance expense $100. 30 Paid administrative assistant $1,020 for the month.
30 A count of supplies indicated that $122 of supplies had been used.
30 Purchased a new computer for $5,266 with personal funds. (The computer will be used exclusively for business purposes.)
Journalize the transactions in the general journal.
Explanation / Answer
Answer
Date (April)
Accounts Titles
Debit
Credit
2
Cash
27070
Equipment
12900
Owners' Equity (Capital)
39970
2
No entry for hiring the assistant
3
Supplies
833
Accounts payables
833
7
Rent expense
546
Cash
546
11
Accounts receivables
1160
Service Revenue
1160
12
Cash
2589
Advance ffrom customer
2589
17
Cash
2201
Service Revenue
2201
21
Insurance expense
100
Cash
100
30
Salaries expenses
1020
Cash
1020
30
Supplies expense
122
Supplies
122
30
Computer
5266
Owner's Equity (Capital)
5266
Date (April)
Accounts Titles
Debit
Credit
2
Cash
27070
Equipment
12900
Owners' Equity (Capital)
39970
2
No entry for hiring the assistant
3
Supplies
833
Accounts payables
833
7
Rent expense
546
Cash
546
11
Accounts receivables
1160
Service Revenue
1160
12
Cash
2589
Advance ffrom customer
2589
17
Cash
2201
Service Revenue
2201
21
Insurance expense
100
Cash
100
30
Salaries expenses
1020
Cash
1020
30
Supplies expense
122
Supplies
122
30
Computer
5266
Owner's Equity (Capital)
5266
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