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In: Accounting

Michael Scott Consulting Corporation started business operations on July 1, 2019. Michael Scott is the sole...

Michael Scott Consulting Corporation started business operations on July 1, 2019.
Michael Scott is the sole owner of the corporation.
Part A: Journalize the following transactions for July.
During July, the following transactions were completed by Michael Scott Consulting Corporation.
1-Jul Michael Scott invested $10,000 in exchange for common stock in Michael Scott
Consulting Corporation.
1-Jul Michael Scott Consulting Corporation received $30,000 - a business loan from his nana.
His nana will charge him 7% APR interest, and the loan will be due in 3 years.
The first payment will be due on December 31, 2019.
1-Jul Prepaid $9,600 for one year of rent for office space.
1-Jul Hired Ryan Howard and Pam Beesly as salespeople. Each will be paid $1,000 per month.
1-Jul Purchased two office computers (PPE) for a total of $1,100 cash.
5-Jul Bought a copy machine (PPE) for $1,300 cash.
7-Jul Purchased office supplies for $900 on account.
8-Jul Pam provided consulting services of $2,500 to Dunder-Mifflin on account due in 10 days.
10-Jul Paid for utilities with $150 cash.
13-Jul Paid for office supplies purchased on account on July 7 in full.
15-Jul Incurred 2 weeks of wages for a total of $1,000 to be paid on July 31.
16-Jul Pam provided consulting services to Jim Halpert of $500, and was paid in cash.
18-Jul Received the payment for services provided on July 8 in full.
22-Jul Ryan provided consulting services for $1,500 to Dwight Schrute on account.
27-Jul Received the payment in full for the services provided on July 22.
31-Jul Paid employee wages incurred on July 15 in full.
31-Jul Incurred one month of interest on the loan from Michael's nana, $175.

Solutions

Expert Solution

Date General Journal Debit Credit
1-Jul. Cash 10000
Common stock 10000
(To record common stock issued for cash)
1-Jul. Cash 30000
Loan/Note payable 30000
(To record amount borrowed)
1-Jul. Prepaid rent 9600
Cash 9600
(To record payment of prepaid rent)
1-Jul. No journal entry required.
1-Jul. PPE 1100
Cash 1100
(To record purchase of computers)
5-Jul. PPE 1300
Cash 1300
(To record purchase of copy machine)
7-Jul. Office supplies 900
Accounts payable 900
(To record office supplies purchased on account)
8-Jul. Accounts receivable 2500
Consulting services revenue 2500
(To record services provided on account)
10-Jul. Utilities expense 150
Cash 150
(To record utilities paid)
13-Jul. Accounts payable 900
Cash 900
(To record payment on account)
15-Jul. Wages expense 1000
Wages payable 1000
(To record wages incurred)
16-Jul. Cash 500
Consulting services revenue 500
(To record cash received for services provided)
18-Jul. Cash 2500
Accounts receivable 2500
(To record collection on account)
22-Jul. Accounts receivable 1500
Consulting services revenue 1500
(To record services provided on account)
27-Jul. Cash 1500
Accounts receivable 1500
(To record collection on account)
31-Jul. Wages payable 1000
Cash 1000
(To record payment of wages incurred)
31-Jul. Interest expense 175
Interest payable 175
(To record interest incurred on loan)

ekkarill92 answered 1 year ago
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