Journal entries for various transactions in sole proprietorship.
1. Complete Exercises E3-1 (Transaction Analysis - Service Company) Beverly Crusher is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following events and transactions occurred.
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April 2
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Invested $32,000 cash and equipment valued at $14,000 in the business
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2
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Hired a secretary-receptionist at a salary of $290 a week payable monthly
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3
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Purchased supplies on an account $700. (Debit an asset account.)
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7
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Paid office rent of $600 for the month
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11
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Completed a tax assignment and billed client $1,100 for services they rendered. (Use Service Revenue account.)
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12
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Received $3,200 advance on a management consulting engagement.
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17
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Received cash of $2,300 for services completed for Ferengi Co.
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21
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Paid insurance expenses at $110.
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30
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Paid secretary-receptionist $1,160 for the month.
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30
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A count of supplies indicated that $120 of supplies had been used.
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30
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Purchased a new computer for $6,100 with personal funds. (The computer will be used exclusively for business purposes.)
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Instructions
Journalize the transactions in the general journal. (Omit explanations)