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Exercise 3-01 Kimberly Crusher is a licensed CPA. During the first month of operations of her...

Question:

Exercise 3-01 Kimberly Crusher is a licensed CPA. During the first month of operations of her business (a sole proprietorship
Exercise 3-01 Kimberly 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 $34,620 cash and equipment valued at $15,500 in the business. 2 Hired an administrative assistant at a salary of $299 per week payable monthly 3 Purchased supplies on account $771. (Debit an asset account.) 7 Paid office rent of $663 for the month. 11 Completed a tax assignment and billed client $1,202 for services rendered. (Use Service Revenue account.) 12 Received $2,679 advance on a management consulting engagement. 17 Received cash of $2.580 for services completed for Ferengi Co 21 Paid insurance expense $118. 30 Paid administrative assistant $1,196 for the month. 30 A count of supplies indicated that $131 of supplies had been used. 30 Purchased a new computer for $6,293 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 for the amounts. Record journal entries in the order presented in the problem.)

Answers

Journal entry

Date account and explanation Debit Credit
Apr 2 Cash 34620
Equipment 15500
Owner's equity 50120
Apr 2 No entry
Apr 3 Supplies 771
Account payable 771
Apr 7 Rent expense 663
Cash 663
Apr 11 Account receivable 1202
Service revenue 1202
Apr 12 Cash 2679
Deferred service revenue 2679
Apr 17 Cash 2580
Service revenue 2580
Apr 21 Insurance expense 118
Cash 118
Apr 30 Salaries expense 1196
Cash 1196
Apr 30 Supplies expense 131
Supplies 131
Apr 30 Computer 6293
Owner's equity 6293
.

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