Question - 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.
April 2 Hired a secretary-receptionist at a salary of $290 per week payable monthly.
April 3 Purchased supplies on account $700. (debit an asset account.)
April 7 Paid office rent of $600 for the month.
April 11 Completed a tax assignment and billed client $1,100 for services rendered. (Use Service Revenue account.)
April 12 Received $3,200 advance on a management consulting engagement.
April 17 Received cash of $2,300 for services completed for Ferengi Co.
April 21 Paid insurance expense $110.
April 30 Paid secretary-receptionist $1,160 for the month.
April 30 A count of supplies indicated that $120 of supplies had been used.
April 30 Purchased a new computer for $5,100 with personal funds. (The computer will be used exclusively for business purposes.)
Instructions - Journalize the transactions in the general journal.