Question

For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 2018, Jeff decided to move to rented quarters and to operate the business, which was to be known as Rosebud Consulting, on a full-time basis. Rosebud entered into the following transactions during April:

Apr. 1.		The following assets were received from Jeff Horton in exchange for common stock: cash, $20,000; accounts receivable, $14,700; supplies, $3,300; and office equipment, $12,000. There were no liabilities received.
1.		Paid three months’ rent on a lease rental contract, $6,000.
2.		Paid the premiums on property and casualty insurance policies, $4,200.
4.		Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $9,400.
5.		Purchased additional office equipment on account from Smith Office Supply Co., $8,000.
6.		Received cash from clients on account, $11,700.
10.		Paid cash for a newspaper advertisement, $350.
12.		Paid Smith Office Supply Co. for part of the debt incurred on April 5, $6,400.
12.		Recorded services provided on account for the period April 1–12, $21,900.
14.		Paid receptionist for two weeks’ salary, $1,650.

Record the following transactions on Page 2 of the journal:
17.		Recorded cash from cash clients for fees earned during the period April 1–16, $6,600.
18.		Paid cash for supplies, $725.
20.		Recorded services provided on account for the period April 13–20, $16,800.
24.		Recorded cash from cash clients for fees earned for the period April 17–24, $4,450.
26.		Received cash from clients on account, $26,500.
27.		Paid receptionist for two weeks’ salary, $1,650.
29.		Paid telephone bill for April, $540.
30.		Paid electricity bill for April, $760.
30.		Recorded cash from cash clients for fees earned for the period April 25–30, $5,160.
30.		Recorded services provided on account for the remainder of April, $2,590.
30.		Paid dividends, $18,000.

Required:

1. Journalize each transaction in a two-column journal starting on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. If there is more than one entry on the same date, be sure to enter the transactions in the exact order as presented in the data. (Do not insert the account numbers in the journal at this time.) For a compound transaction, if an amount box does not require an entry, leave it blank.

11	Cash		31	Common Stock
12	Accounts Receivable		32	Retained Earnings
14	Supplies		33	Dividends
15	Prepaid Rent		41	Fees Earned
16	Prepaid Insurance		51	Salary Expense
18	Office Equipment		52	Supplies Expense
19	Accumulated Depreciation		53	Rent Expense
21	Accounts Payable		54	Depreciation Expense
22	Salaries Payable		55	Insurance Expense
23	Unearned Fees		59	Miscellaneous Expense

JOURNAL				PAGE 1
Date	Account Title	Post. Ref.	Debit	Credit
2018
Apr. 1
Apr. 1
Apr. 2
Apr. 4
Apr. 5
Apr. 6
Apr. 10
Apr. 12
Apr. 12
Apr. 14
JOURNAL				PAGE 2
Date	Account Title	Post. Ref.	Debit	Credit
2018
Apr. 17
Apr. 18
Apr. 20
Apr. 24
Apr. 26
Apr. 27
Apr. 29
Apr. 30
Apr. 30
Apr. 30
Apr. 30

Answer 1

Date	Account Title	post. Ref	Debit	Credit
1-Apr	Cash A/c	R1	20,000
	Accounts receivable A/c		14,700
	Supplies A/c		3,300
	Office Equipment A/c		12,000
	To Commom Stock A/c			50,000
	( being initial capital introduced )
1-Apr	Prepaid Rent A/c	R2	4,000
	Rent A/c		2,000
	To cash A/c			6,000
	( Being two months rent paid in advance)
2-Apr	Prepaid Insurance A/c	R3	3,850
	Insurance A/c		350
	To cash A/c			4,200
	( Being annual insurance premium paid , 11 months considered as prepaid )
4-Apr	Cash A/c	R4	9,400
	To Unearned Fees			9,400
	( being cash received for advance work )
5-Apr	Office Equipment A/c	R5	8,000
	To Account payables			8,000
6-Apr	Cash A/c	R6	11,700
	To Account receivable			11,700
10-Apr	Miscellaneous Exp A/c	R7	350
	To Cash A/c			350
12-Apr	Account payables A/c	R8	6,400
	To Cash A/c			6,400
12-Apr	Account receivable A/c	R9	21,900
	To Fees Earned A/c			21,900
14-Apr	Salary Expense A/c	R10	1,650
	to Cash A/c			1,650
17-Apr	Cash A/c	R11	6,600
	to Fees Earned			6,600
18-Apr	Supplies Exp A/c	R12	725
	To Cash A/c			725
20-Apr	Account receivable A/c	R13	16,800
	To Fees Earned A/c			16,800
24-Apr	Cash A/c	R14	4,450
	to Fees Earned			4,450
26-Apr	Cash A/c	R15	26,500
	To Account receivable			26,500
27-Apr	Salary Expense A/c	R16	1,650
	to Cash A/c			1,650
29-Apr	Miscellaneous Exp A/c	R17	540
	To Cash A/c			540
30-Apr	Miscellaneous Exp A/c	R17	760
	To Cash A/c			760
30-Apr	Cash A/c	R18	5,160
	to Fees Earned			5,160
30-Apr	Account receivable A/c	R19	2,590
	To Fees Earned A/c			2,590
30-Apr	Dividend Expense A/c	R20	18,000
	To cash A/c			18,000
	( being dividend declared from the statement of owners
	which was transferred from retained earnings)