Question

Shamrock 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 $27,070 cash and equipment valued at $12,900 in the business.
2		Hired an administrative assistant at a salary of $255 per week payable monthly.
3		Purchased supplies on account $833. (Debit an asset account.)
7		Paid office rent of $546 for the month.
11		Completed a tax assignment and billed client $1,160 for services rendered. (Use Service Revenue account.)
12		Received $2,589 advance on a management consulting engagement.
17		Received cash of $2,201 for services completed for Ferengi Co.
21		Paid insurance expense $100.
30		Paid administrative assistant $1,020 for the month.
30		A count of supplies indicated that $122 of supplies had been used.
30		Purchased a new computer for $5,266 with personal funds. (The computer will be used exclusively for business purposes.)

Journalize the transactions in the general journal.

Answer 1

Journal entries :

Date	accounts & explanation	debit	credit
Apr 2	Cash	27070
	Equipment	12900
	Owner's capital a/c		39970
	(To record investment in bussiness)
Apr 2	No entry
Apr 3	Supplies a/c	833
	Account payable a/c		833
	(To record purchase supplies on account)
Apr 7	Rent expenses	546
	Cash a/c		546
	(To record rent paid)
Apr 11	Account receivable	1160
	Service revenue a/c		1160
	(To record service on account)
Apr 12	Cash a/c	2589
	Unearned service revenue		2589
	(To record unearned service revenue)
Apr 17	Cash a/c	2201
	Service revenue a/c		2201
	(To record service revenue)
Apr 21	Insurance exp	100
	Cash a/c		100
	(To record insurance paid)
Apr 30	Salary expenses a/c	1020
	Cash a/c		1020
	(To record salary paid)
Apr 30	Supplies exp	711
	Supplies a/c		711
	(To record supplies used)
Apr 30	Drawings a/c	5266
	Cash a/c		5266
	(To record drawings)