Question

AAA Tax Service opens their business on April 1 and have the following transactions
in the month.:
4/1 The company founder invests $50,000 and becomes the company's only shareholder.
4/2 The company buys 4 computers for total cost $8,100, paying 2,100 cash and 6,000 on account.
4/6 The Company pays cash for a 12 month insurance policy 6,000. Effective 4/1 - 3/31/next year
4/7 The company buys supplies that will be used for several months. This costs $6,000 on account
4/8 The company's first customer pays cash of $4000 for tax service
4/15 The company pays payroll expense of $2,000
4/17 More tax service is performed for customers on account for $7,500
4/25 The company collects 3,000 from customers for service just completed in g above on 4/17
4/30 The company pays the amount owed for the 4 computers bought on 4/2 above ($6,000)
4/30 The company pays $2,000 for the first months rent expense
4/30 The company receives $7,000 cash for tax work for a customer. Work will be completed next Mo.
4/30 The company pays a dividend of $1,000 for the month
Adjustments
4/30 Create the depreciation entry for the month for the computers. $225 per month
4/30 Make the adjustment entry for one month of insurance for the insurance purchased on 4/6
4/30 They rush and complete half the job for the customer in k above. Create the entry to recognize
half of the revenue.
4/30 A count of the supplies shows a total of $4,000 remaining in supplies.

1. Describe each of the above with a Journal entry Include the date

2.Prepare T-accounts for the accounts above and post all transactions for April

3.Create the Trial Balance

4.What is the Net Income for the Month

Answer 1