Question

Janet Smythe started her personal coaching business, Smythe Personal Coaching, on November 1, 2019 Janet records purchasing supplies as assets and cash received from clients on deposit as unearned revenue. The following transactions occurred during the first month of operations:

Nov. 1Janet Smythe invested $25,000 personal cash in the business by depositing that amount in the bank account titled Smythe Personal Coaching. The business gave capital to Smythe.

Nov. 1Paid the November rent on the office space, $1,500.

Nov. 3Purchased a computer and printer for use in the business; she used her personal credit card in the amount of $1,800.

Nov. 5Purchased office supplies in the amount of $75 on an account she set up with the store, Ace Office Depot.

Nov. 10Received $500 from her first client, Robert Jones, as payment in advance for coaching fees. (Record this amount in the account Unearned Coaching Revenue.)

Nov. 17Travelled to Montreal to attend a personal coaches conference. The conference lasted one week and costs were: travel $1,500; conference registration fee, $750. Used cash from the business to pay for the expenses.

Nov. 25Paid Ace Office Depot the amount owing from November 5.

Required:

Prepare journal entries for the above transactions in the month of November.

Answer 1

November 1,	Cash		Dr	$ 25,000.00
		To Capital	Cr		$ 25,000.00
	Being cash invested in business by Janet
November 1,	Office Rent		Dr	$   1,500.00
		To Cash	Cr		$   1,500.00
	Being office rent paid using cash
November 3,	Computer and Printer		Dr	$   1,800.00
		To Capital	Cr		$   1,800.00
	Being Computer and printer purchased using personal credit card
November 5,	Office Supplies		Dr	$        75.00
		To Ace office Depot ( Account Payable)	Cr		$        75.00
	Being office supplies purchased on credit
November 10,	Cash		Dr	$      500.00
		To Unearned Revenue	Cr		$      500.00
	Being cash collected in advance from Janet's client as coaching fees
November 17,	Drawing		Dr	$   2,250.00
		To Cash	Cr		$   2,250.00
	Being Business cash used to attend personal coaching conference
November 25,	Ace office Depot ( Account Payable)		Dr	$        75.00
		To Cash	Cr		$        75.00
	Being Cash paid to Ace office depot for purchase of Office supplies on Account