Question

Laura 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 $26,320 cash and equipment valued at $11,370 in the business.
2 Hired an administrative assistant at a salary of $346 per week payable monthly.
3 Purchased supplies on account $802. (Debit an asset account.)
7 Paid office rent of $532 for the month.
11 Completed a tax assignment and billed client $950 for services rendered. (Use Service Revenue account.)
12 Received $3,325 advance on a management consulting engagement.
17 Received cash of $1,856 for services completed for Ferengi Co.
21 Paid insurance expense $110.
30 Paid administrative assistant $1,384 for the month.
30 A count of supplies indicated that $122 of supplies had been used.
30 Purchased a new computer for $6,019 with personal funds. (The computer will be used exclusively for business purposes.)

Required:
Journalize the transactions in the general journal.

Answer 1

1- Cash (Dr.) $ 26,320

Equipment (Dr.) $ 11,370

Capital (Cr.) $ 37,690

2- No entry

3- Office Supplies (Dr.) $802

Accounts Payable (Cr.) $346

4- Rent expense (Dr.) $532

Cash (Cr.) $532

5- Cash (Dr.) $3,325

Unearned Revenue (Cr.) $3,325

6- Cash (Dr.) $1,856

Sales - Ferengi Co. (Cr.) $1,856

7- Insurance Expense (Dr.) $110

Cash (Cr.) $110

8- Administrative assistant salary Expense (Dr.) $1,384

Cash (Cr.) $1,834

9- no entry

10- Computer (Dr.) $6,019

Capital (Cr.) $6,019

Step-by-step explanation:

Journal entries are prepared for Laura Crusher. The debit account is shown as Dr. and credit is shown as Cr. These journal entries will be included in ledger accounts and then trial balance will be created.