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Assignment 1 Recording Process Emily Valley is a licensed dentist. During the first month of the...

Assignment 1 Recording Process Emily Valley is a licensed dentist. During the first month of the operation of her business, the following events and transactions occurred. April 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 $1,100. 3 Purchased dental supplies on account from Dazzle Company $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 for the month $2,800. 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 Service Revenue, No. 301 Owner’s Capital, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense. Instructions (a) Journalize the transactions. (b) Post to the ledger accounts. (c) Prepare a trial balance on April 30, 2014.

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ANSWER

Part 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

_____

Part 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

_____

Onwer'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
Apr 02 1,100 1,100

_____

Part c)

The trial balance as on April 30, 2014 is given as below:

Emily's Business
Trial Balance
April 30, 2017
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

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