(Transaction Analysis—Service Company) Beverly Crusher is a licensed CPA. During

Question

(Transaction Analysis—Service Company) Beverly Crusher is a licensed CPA. During the first month of opera-tions 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 an administrative assistant 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 administrative assistant $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.)
Instructions Journalize the transactions in the general journal. (Omit explanations.)

Explanation / Answer

Apr 2: cash(db) 18000
equipment(db)14000
owner cap(cR)32000
Apr 2: No entry
Apr 3: supplies(db)700
account payable(cr)700
Apr 7: Rent expense(db)600
Cash(Cr)600
Apr 11:Account receivbale(Db)1100
Service Revenue(cr)1100
Apr 12: cash(db)3200
unearned service(cR)3200
Apr 17: Cash(Db)3200
service revenue(cr)3200
Apr 21: insurance expense(dB)110
cash(cr)110
Apr 30:wage expense(db) 1160
cash(cr) 1160
Apr 30:supplies expense(db)120
supploes(cr)120
Apr 30:Equipment(db)6100
owners capital(cr)6100

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