Question

Blue Suits Consulting began business on January 1, 2017. Using an Excel spreadsheet, prepare journal entries for the following transactions that occurred during 2017.

• January 1, 2017 The Owner invested $28,000 in cash and a computer equipment valued at $15,000 in the company.
• February 3, 2017 The Company performed services for a client and immediately received cash in the amount of $6,300.
• February 28, 2017 The Company purchased office equipment on credit for $8,000.
• March 3, 2017 The Company performed services for a client and billed the client for $2,300 to be paid with terms 2/10, n/30.
• March 10, 2017 The Company received payment from the client in the March 3rd transaction to pay on their account.
• April 9, 2017 The Company paid cash for the bill for the equipment purchased on February 28th.
• December 25, 2017 The Company purchased $1,300 of supplies on account. This bill will be paid in January 2018.
• December 31, 2017 The Owner withdrew $2,500 in cash from the company.

Answer 1

Solution:

Journal Entries - Blue Suits Consulting
Date	Particulars	Debit	Credit
1-Jan-17	Cash Dr	$28,000.00
	Computer Equipment Dr	$15,000.00
	To Owner's Capital		$43,000.00
	(Being captial invested by owner)
3-Feb-17	Cash Dr	$6,300.00
	To Service Revenue		$6,300.00
	(Being service performed for client)
28-Feb-17	Office equipment Dr	$8,000.00
	To Accounts payable		$8,000.00
	(To record purchase of office equipment on credit)
3-Mar-17	Accounts receivables Dr	$2,300.00
	To Service Revenue		$2,300.00
	(Being service performed for client)
10-Mar-17	Cash Dr ($2,300*98%	$2,254.00
	Sales discount Dr	$46.00
	To Accounts receivables		$2,300.00
	(To reocrd collection from receivables)
9-Apr-17	Accounts payable Dr	$8,000.00
	To Cash		$8,000.00
	(To record payment for equipment purchase)
25-Dec-17	Supplies Dr	$1,300.00
	To Accounts payable		$1,300.00
	(To record purchase of supplies on account)
31-Dec-17	Owner's Drawings Dr	$2,500.00
	To Cash		$2,500.00
	(Being cash withdrawn by owner)