Shamrock Crusher is a licensed CPA. During the first month of operations of her

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.

Journalize the transactions in the general journal.

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.)

Explanation / Answer

Journal entries :

Date accounts & explanation debit credit Apr 2 Cash 27070 Equipment 12900 Owner's capital a/c 39970 (To record investment in bussiness) Apr 2 No entry Apr 3 Supplies a/c 833 Account payable a/c 833 (To record purchase supplies on account) Apr 7 Rent expenses 546 Cash a/c 546 (To record rent paid) Apr 11 Account receivable 1160 Service revenue a/c 1160 (To record service on account) Apr 12 Cash a/c 2589 Unearned service revenue 2589 (To record unearned service revenue) Apr 17 Cash a/c 2201 Service revenue a/c 2201 (To record service revenue) Apr 21 Insurance exp 100 Cash a/c 100 (To record insurance paid) Apr 30 Salary expenses a/c 1020 Cash a/c 1020 (To record salary paid) Apr 30 Supplies exp 711 Supplies a/c 711 (To record supplies used) Apr 30 Drawings a/c 5266 Cash a/c 5266 (To record drawings)

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