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.
April 2 Hired a secretary-receptionist at a salary of $290/week payable monthly.
April 3 Purchased supplies on account $700 (debit an asset account).
April 7 Paid office rent of $600 for the month.
April 11 Completed a tax assignment and billed client $1,100 for services rendered. (Use service revenue account)
April 12 Received $3,200 advance on a management consulting engagement.
April 17 Received cash of $2,300 for services completed for Ferengi Co.
April 21 Paid insurance expense $110.
April 30 Paid Secretary-Receptionist $1,160 for the month.
April 30 A count of supplies indicated that $120 of supplies had been used.
April 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.© BrainMass Inc. brainmass.com March 4, 2021, 7:52 pm ad1c9bdddf
The solution presents the journal entries as required. Another additional column has been added for disclosure of what type of account is involved for each entry (asset, liability, equity, revenue or expense).