Question

In: Accounting

On April 1, 2018 Hippocrates Consulting began operations with the following beginning balances entered on April...

On April 1, 2018 Hippocrates Consulting began operations with the following beginning balances entered on April 1^st as seen in the T-accounts below. First show each of the transactions described below as a journal entry including the date and then post each of the entries to the T-accounts below. After you have completed all of the entries as well as the adjusting entries prepare an Income Statement, Statement of Retained Earnings, and Balance Sheet for the month of April, 2018. Make sure that your statements presented in good form (points will be deducted if they are not in good form).

April 1: Paid three months’ rent on a lease rental contract, $4,800

2: Paid a six-month insurance premium for $1,800

4: Received cash from clients as an advance payment for services to be

provided and recorded as unearned fees, $5,000

5: Purchased additional office equipment on account from Office Station Co.,

$2,000.

6: Received cash from clients on account, $1,800.

10: Paid cash for a newspaper advertisement, $120

12: Paid Office Station Co. for part of the debt incurred on April 5, $1200.

12: Recorded services provided on account for the period April 1-12, $4,200.

14. Paid part-time receptionist for two weeks’ salary, $750.

17: Recorded cash from cash clients for fees earned during the period April

1-16, $6,250.

18: Paid cash for supplies, $800.

20: Recorded services provided on account for the period April 13-20, $2,100.

24: Recorded cash from cash clients for fees earned the period April

17-24, $3,850.

26: Received cash from clients on account, $5,600.

27: Paid part-time receptionist for two weeks’ salary, $750.

29: Paid telephone bill for April, $130.

30: Paid electricity bill for April, $200.

30: Recorded cash from cash clients for fees earned for the period April 25-30,

$3,050.

30: Recorded services provided on account for the remainder of April, $1,500.

30. A dividend of $6,000 was declared and paid.

The following are adjusting entries to be recorded on April 30th:

Insurance expired during April is $300.
Supplies on hand on April 30 are $1,350.
Depreciation of office equipment for April is $700.
Accrued receptionist salary on April 30 is $120.
Rent expired during April is $1,600.
Unearned fees on April 30 are $2,500.

Accounts

Cash Receivable Supplies Prepaid Rent

--------------------- ------------------- -------------- ---------------

$13,100 $3,000 $1,400

Office Accumulated

Prepaid Insurance Equipment Depreciation

-------------------------- ------------------- -------------------

$12,500

Unearned

Accounts Payable Salaries Payable Fees Common Stock

----------------------- --------------------- ---------------- --------------------

$30,000

Retained Earnings Fees Earned Salary Expense Rent Expense

------------------------ ----------------- ---------------------- ------------------

Depreciation Miscellaneous

Supplies Expense Expense Insurance Expense Expense

----------------------- --------------------- ------------------------- -----------------

Expert Solution

JE:
Date	Account Title	Debit	Credit
2018
Apr. 01	Prepaid Rent	$ 4,800
	Cash		$ 4,800
2	Prepaid Insurance	$ 1,800
	Cash		$ 1,800
4	Cash	$ 5,000
	Unearned Fees		$ 5,000
5	Office Equipment	$ 2,000
	Account Payable		$ 2,000
6	Cash	$ 1,800
	Account Receivable		$ 1,800
10	Misc. Expense	$ 120
	Cash		$ 120
12	Account Payable	$ 1,200
	Cash		$ 1,200
12	Account Receivable	$ 4,200
	Fees Earned		$ 4,200
14	Salaries Expense	$ 750
	Cash		$ 750
17	Cash	$ 6,250
	Fees Earned		$ 6,250
18	Supplies	$ 800
	Cash		$ 800
20	Account Receivable	$ 2,100
	Fees Earned		$ 2,100
24	Cash	$ 3,850
	Fees Earned		$ 3,850
26	Cash	$ 5,600
	Account Receivable		$ 5,600
27	Salaries Expense	$ 750
	Cash		$ 750
29	Misc. Expense	$ 130
	Cash		$ 130
30	Misc. Expense	$ 200
	Cash		$ 200
30	Cash	$ 3,050
	Fees Earned		$ 3,050
30	Account Receivable	$ 1,500
	Fees Earned		$ 1,500
30	Dividend	$ 6,000
	Cash		$ 6,000
ADJ JE
Apr.30	Insurance Expense	$ 300
	Prepaid Insurance		$ 300
30	Supplies Expense	$ 850
	Supplies		$ 850
30	Depreciation Expense	$ 700
	Accumulated Dep.		$ 700
30	Salaries Expense	$ 120
	Salaries Payable		$ 120
30	Rent Expense	$ 1,600
	Prepaid Rent		$ 1,600
30	Unearned Fees	$ 2,500
	Fees Earned		$ 2,500

Cash
Date	Description	Debit	Credit	Balance
Apr. 01	Beg. Bal.			$ 13,100
1	Prepaid Rent		$ 4,800	$ 8,300
2	Prepaid Ins.		$ 1,800	$ 6,500
4	Unearned Fees	$ 5,000		$ 11,500
6	AR	$ 1,800		$ 13,300
10	Misc. Expense		$ 120	$ 13,180
12	AP		$ 1,200	$ 11,980
14	Salary Exp.		$ 750	$ 11,230
17	Fees Earned	$ 6,250		$ 17,480
18	Supplies		$ 800	$ 16,680
24	Fees Earned	$ 3,850		$ 20,530
26	AR	$ 5,600		$ 26,130
27	Salary Exp.		$ 750	$ 25,380
29	Misc. Expense		$ 130	$ 25,250
30	Misc. Expense		$ 200	$ 25,050
30	Fees Earned	$ 3,050		$ 28,100
30	Dividend		$ 6,000	$ 22,100
Account Receivable
Apr. 01	Beg. Bal.			$ 3,000
6	Cash		$ 1,800	$ 1,200
12	Fees Earned	$ 4,200		$ 5,400
20	Fees Earned	$ 2,100		$ 7,500
26	Cash		$ 5,600	$ 1,900
30	Fees Earned	$ 1,500		$ 3,400
Prepaid Rent
Apr. 01	Beg. Bal.			$ -
Apr. 01	Cash	$ 4,800		$ 4,800
30	Rent Expense		$ 1,600	$ 3,200
Prepaid Insurance
Apr. 01	Beg. Bal.			$ -
2	Cash	$ 1,800		$ 1,800
30	Insurance Expense		$ 300	$ 1,500
Supplies
Apr. 01	Beg. Bal.			$ 1,400
18	Cash	$ 800		$ 2,200
30	Supplies Expense		$ 850	$ 1,350
Office Equipment
Apr. 01	Beg. Bal.			$ 12,500
5	A. Payable	$ 2,000		$ 14,500
Account Payable
Apr. 01	Beg. Bal.			$ -
5	Off. Equipment		$ 2,000	$ 2,000
12	Cash	$ 1,200		$ 800
Salaries Payable
Apr. 01	Beg. Bal.			$ -
30	Salaries Expense		$ 120	$ 120
Unearned Fees
Apr. 01	Beg. Bal.			$ -
4	Cash		$ 5,000	$ 5,000
30	Fees Earned	$ 2,500		$ 2,500
Salaries Expense
Apr. 01	Beg. Bal.			$ -
14	Cash	$ 750		$ 750
27	Cash	$ 750		$ 1,500
30	Salaries Payable	$ 120		$ 1,620
Rent Expense
Apr. 01	Beg. Bal.			$ -
30	Prepaid Rent	$ 1,600		$ 1,600
Supplies Expense
Apr. 01	Beg. Bal.			$ -
30	Supplies	$ 850		$ 850
Dep. Expense
Apr. 01	Beg. Bal.			$ -
30	Acc. Depreciation	$ 700		$ 700
Misc. Expense
Apr. 10	Beg. Bal.	$ 120		$ 120
29	Cash	$ 130		$ 250
30	Cash	$ 200		$ 450
Fees Earned
Apr. 12	Account Receivable		$ 4,200	$ 4,200
17	Cash		$ 6,250	$ 10,450
20	AR		$ 2,100	$ 12,550
24	Cash		$ 3,850	$ 16,400
30	Cash		$ 3,050	$ 19,450
30	AR		$ 1,500	$ 20,950
30	Unearned Fees		$ 2,500	$ 23,450

Common Stock
Apr. 01	Beg. Bal.	-------	--------	$ 30,000
30	End. Bal.	--------	--------	$ 30,000

Hippocrates Consulting
Income Statement
Apr. 30,2019
Fees Earned		$23,450
Less: Expense:
Salaries Expense	$1,620
Rent Expense	$1,600
Supplies Expense	$850
Insurance Expense	$300
Dep. Expense	$700
Miss. Expense	$450
Total Expense	$5,520	$5,520
Net Income		$17,930
Hippocrates Consulting
Statement of Retained Earning
Apr. 30, 2019
Beg. Bal		$0
Net Income		$17,930
Dividend		-$6,000
Ending Balance		$11,930
Hippocrates Consultancy
Balance Sheet
Apr. 30, 2019
Assets
Cash		$22,100
Prepaid Insurance		$1,500
Prepaid Rent		$3,200
AR		$3,400
Supplies		$1,350
Equipment		$14,500
Acc. Depreciation		-$700
Total Assets		$45,350
Liabilities & Equity
Liabilities:
Salaries Payable		$120
Account Payable		$800
Unearned Fees		$2,500
Owner's Equities:
Common Stock		$30,000
Retained Earnings		$11,930
Total Liabilities & Equities		$45,350

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