Question

Debra 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 $28,380 cash and equipment valued at $14,150 in the business.
2		Hired an administrative assistant at a salary of $301 per week payable monthly.
3		Purchased supplies on account $588. (Debit an asset account.)
7		Paid office rent of $706 for the month.
11		Completed a tax assignment and billed client $1,065 for services rendered. (Use Service Revenue account.)
12		Received $3,474 advance on a management consulting engagement.
17		Received cash of $2,365 for services completed for Ferengi Co.
21		Paid insurance expense $99.
30		Paid administrative assistant $1,204 for the month.
30		A count of supplies indicated that $101 of supplies had been used.
30		Purchased a new computer for $5,283 with personal funds. (The computer will be used exclusively for business purposes.)

Journalize the transactions in the general journal. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Answer 1

Journal entry

Date	General Journal	Debit	Credit
Apr 2	Cash	28380
	Equipment	14150
	Owner's equity		42530
Apr 2	No Journal entry
Apr 3	Supplies	588
	Account payable		588
Apr 7	Office rent	706
	Cash		706
Apr 11	Account receivable	1065
	Service revenue		1065
Apr 12	Cash	3474
	Unearned service revenue		3474
Apr 17	Cash	2365
	Service revenue		2365
Apr 21	Insurance expense	99
	Cash		99
Apr 30	Salaries expense	1204
	Cash		1204
Apr 30	Supplies expense (588-101)	487
	Supplies		487
Apr 30	Owner's withdrawal	5283
	Cash		5283