Question

Emily Valley is a licensed dentist. During the first month of operation of her business, the following events and transactions occurred.

Journalize transactions, post, and prepare a trial balance.

Apr.    1		Invested $20,000 cash in her business.
1		Hired a secretary-receptionist at a salary of $700 per week, payable monthly.
2		Paid office rent for the month of $1,100.
3		Purchased dental supplies on account from Dazzle Company of $4,000.
10		Performed dental services and billed insurance companies $5,100.
11		Received $1,000 cash advance from Leah Mataruka for an implant.
20		Received $2,100 cash for services performed from Michael Santos.
30		Paid secretary-receptionist $2,800 for the month.
30		Paid $2,400 to Dazzle for accounts payable due.

Emily uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Revenue, No. 301 E. Valley, Capital, No. 400 Service Revenue, No. 726 Salaries Expense, and No. 729 Rent Expense.

Instructions

a. Journalize the transactions.

b. Post the journal entries to the ledger accounts. (Use the ledger format provided in Illustration 2.20.)

c. Prepare a trial balance at April 30, 2021.

Answer 1

a) The journal entries are prepared as below:

Date	Account Titles	Ref.	Debit	Credit
Apr 01	Cash	101	$20,000
	Owner's Capital	301		$20,000
Apr 01	No Entry Needed
Apr 02	Rent Expense	729	$1,100
	Cash	101		$1,100
Apr 03	Supplies	126	$4,000
	Accounts Payable	201		$4,000
Apr 10	Accounts Receivable	112	$5,100
	Service Revenue	400		$5,100
Apr 11	Cash	101	$1,000
	Unearned Service Revenue	209		$1,000
Apr 20	Cash	101	$2,100
	Service Revenue	400		$2,100
Apr 30	Salaries and Wages Expense	726	$2,800
	Cash	101		$2,800
Apr 30	Accounts Payable	201	$2,400
	Cash	101		$2,400

b)

The ledger accounts are provided as follows:

Cash (No. 101)
Date	Explanation	Ref.	Debit	Credit	Balance
Apr 01		J1	20,000		20,000
Apr 02		J1		1,100	18,900
Apr 11		J1	1,000		19,900
Apr 20		J1	2,100		22,000
Apr 30		J1		2,800	19,200
Apr 30		J1		2,400	16,800

Accounts Receivable (No. 112)
Date	Explanation	Ref.	Debit	Credit	Balance
Apr 10		J1	5,100		5,100

Supplies (No. 126)
Date	Explanation	Ref.	Debit	Credit	Balance
Apr 03		J1	4,000		4,000

Accounts Payable (No. 201)
Date	Explanation	Ref.	Debit	Credit	Balance
Apr 03		J1		4,000	4,000
Apr 30		J1	2,400		1,600

Unearned Service Revenue (No. 209)
Date	Explanation	Ref.	Debit	Credit	Balance
Apr 11		J1		1,000	1,000

Owner’s Capital (No. 301)
Date	Explanation	Ref.	Debit	Credit	Balance
Apr 01		J1		20,000	20,000

Service Revenue (No. 400)
Date	Explanation	Ref.	Debit	Credit	Balance
Apr 10		J1		5,100	5,100
Apr 20		J1		2,100	7,200

Salaries and Wages Expense (No. 726)
Date	Explanation	Ref.	Debit	Credit	Balance
Apr 30		J1	2,800		2,800

Rent Expense (No. 729)
Date	Explanation	Ref.	Debit	Credit	Balance

_____________________________________________________________________________________ _____________________________________________________________________________________

c)

The trial balance as on April 30, 2021 is given as below:

Emily's Business
Trial Balance
April 30, 2021
Account Titles	Ref.	Debit	Credit
Cash	101	16,800
Accounts Receivable	112	5,100
Supplies	126	4,000
Accounts Payable	201		1,600
Unearned Service Revenue	209		1,000
Owner's Capital	301		20,000
Service Revenue	400		7,200
Salaries and Wages Expense	726	2,800
Rent Expense	729	1,100
Total		$29,800	$29,800

Hope this helped ! Let me know in case of any queries.