Question

3- Linda Smith has a business. During the first month of the operation of her business, the following events and transactions occurred. 1- April 1 Invested $25,000 cash in her business. 2- Hired an assistant at a salary of $450 per week payable monthly. 3- Paid office rent for the month $750. 4- Purchased supplies on account from Zera Company $2,500. 5- Performed services and received in cash $3,150. 6- Received $250 cash advance from Moora as a deposit. 7- April 30 she paid the assistance the salary for the month $1,950. 8- April 30 she paid $2,500 to Zera Company for accounts payable due. Linda uses the following accounts: Cash, Supplies, Accounts Payable, Unearned Service Revenue, Owner’s Capital, Service Revenue, Salaries and Wages Expense, and, Rent Expense. Instructions: - Journalize the transactions.

Answer 1

Date	Account Titles and Explanations					Debit	Credit
April
1)	Cash					25,000
	owners capital						25,000
2)	No Entry
3)	Rent expense					750
	cash						750
4)	Supplies					2500
	Accounts payable						2500
5)	cash					3,150
	service revenue						3,150
6)	Cash					250
	unearned service revenue						250
7)	Salaries and wage expense					1,950
	Cash						1,950
8)	Accounts payable					2500
	cash						2500