ACG 3103-1_Individual_Week 3 - ACG 3103-1 Individual Week 3...

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ACG 3103-1 Individual Week 3
E3-1: Transaction Analysis (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. April 2 Invested $32,000 cash and equipment valued at $14,000 in the business. 2 Hired a secretary-receptionist at a salary of $290 per week payable monthly. 3 Purchased supplies on account $700. (Debit an asset account.) 7 Paid office rent of $600 for the month. 11 Completed a tax assignment and billed client $1,100 for services rendered. (Use Service Revenue account.) 12 Received $3,200 advance on a management consulting engagement. 17 Received cash of $2,300 for services completed for Ferengi Co. 21 Paid insurance expense $110. 30 Paid secretary-receptionist $1,160 for the month. 30 A count of supplies indicated that $120 of supplies had been used. 30 Purchased a new computer for $6,100 with personal funds. (The computer will be used exclusively for business purposes.) Instructions Journalize the transactions in the general journal. (Omit explanations.) B. CRUSHER General Journal April 30, 2014 Date Account Name Debit Credit 2 Cash B. CRUSHER Capital 32,000 32,000 2 Equipment B. CRUSHER Capital 14,000 14,000 3 Supplies Accounts Payable 700 700 7 Rent Expense Rent Payable 600 600 11 Accounts Receivable Service Revenue 1,100 1,100 12 Cash 3,200
Unearned Income 3,200 17 Cash Service Revenue 2,300 2,300 21 Insurance Expense Cash 110 110 30 Salaries Expense Payroll 1,160 1,160 30 Supplies Expense Supplies 120 120 30 Equipment B. CRUSHER Capital 5,100 5,100 E3-3: Corrected Trial Balances The trial balance of Blues Traveler Corporation does not balance.

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