Accounting E3-1

In: Business and Management

Submitted By Babs7112
Words 252
Pages 2
E3-1 (Transaction Analysis—Service Company) Christine Ewing 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 $30,000 cash and equipment valued at $14,000 in the business.

Cash $30,000 Equipment $14,000 Owner’s capital $44,000 2. Hired a secretary-receptionist at a salary of $290 per week payable monthly. No transaction has occurred as of yet. 3. Purchased supplies on account $700. (debit an asset account.)

Supplies $700.00 Accounts Payable $700.00 7. Paid office rent of $600 for the month. Rent Expense $600.00 Cash $600.00

11. Completed a tax assignment and billed client $1,100 for services rendered. (Use Service Revenue account.) Accounts Receivable $1,100.00 Revenue $1,100.00

12. Received $3,200 advance on a management consulting engagement. Cash $3,200.00 Unearned Revenue $3,200.00

17. Received cash of $2,300 for services completed for Ferengi Co.

Cash $2,300.00 Revenue $2,300.00 21. Paid insurance expense $110.

Insurance Expense $110.00 Cash $11.00 30. Paid secretary-receptionist $1,160 for the month.

Salary Expense $1,160.00 Cash $1,160.00 30. A count of supplies indicated that $120 of supplies had been used.

Supplies Expense $120.00 Supply $120.00 30. Purchased a new computer for $5,100 with personal funds. (The computer will be used exclusively for business purposes.)

Equipment $5,100.00 Capital…...

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