Question

Question 2

The following transactions take place in April 2018 for Del Martin Consulting:

1. Del Martin invested $15,000 cash into his new business.
2. Purchased $2,000 of furniture on the account.
3. Purchased $500 of furniture, paying cash.
4. Did $1,000 of work for a customer; collected cash.
5. Did $700 of work for a customer on account.
6. Paid $500 regarding (b).
7. Collected $300 regarding (e).
8. Did $400 of work for a client on credit.

Required:

1. Journalize all transactions.
2. Open and record the transactions in T-accounts.

Answer 1

a. Journal entries are as prepared below:

Date	Particulars	L.F	Amount ($)	Amount ($)
a	Cash		15,000
	Del Martin Capital			15,000
	(For cash invested)
b	Furniture		2,000
	Accounts Payable			2,000
	(For furniture purchased)
c	Furniture		500
	Cash			500
	(For furniture purchased)
d	Cash		1,000
	Service Revenue			1,000
	(for revenue earned)
e	Account Receivable		700
	Service Revenue			700
	(for revenue earned)
f	Account Payable		500
	Cash			500
	(For cash paid)
g	Cash		300
	Account Receivable			300
	(For cash collected)
h	Account Receivable		400
	Service Revenue			400
	(for revenue earned)

b. T-accounts

Cash
Particulars	Amount ($)	Particulars	Amount ($)
a	15,000	c	500
d	1,000	f	500
g	300
	16,300		1,000
Ending Balance	15,300
Del martin Capital
Particulars	Amount ($)	Particulars	Amount ($)
		a	15,000
	0		15,000
		Ending Balance	15,000
Furniture
Particulars	Amount ($)	Particulars	Amount ($)
b	2,000
c	500
	2,500		0
Ending Balance	2,500
Account Receivable
Particulars	Amount ($)	Particulars	Amount ($)
e	700	g	300
h	400
	1,100		300
Ending Balance	800
Account payable
Particulars	Amount ($)	Particulars	Amount ($)
f	500	b	2,000
	500		2,000
		Ending Balance	1,500
Service Revenue
Particulars	Amount ($)	Particulars	Amount ($)
		d	1,000
		e	700
		h	400
	0		2,100
		Ending Balance	2,100