Question

Vera Ernst is a licensed dentist. During the first month of the operation of her business, the following events and transactions occurred. April 1 Invested $18,000 cash in her business. 1 Hired a secretary-receptionist at a salary of $600 per week payable monthly. 2 Paid office rent for the month $1,200. 3 Purchased dental supplies on account from Dazzle Company $3,300. 10 Performed dental services and billed insurance companies $5,200. 11 Received $1,400 cash advance from Leah Mataruka for an implant. 20 Received $1.600 cash for services performed from Michael Santos. 30 Paid secretary-receptionist for the month $2,400. 30 Paid $2.180 to Dazzle for accounts payable due. (a) Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit

Journalize the transactions

Answer 1

solution:

Credit Debit $ 18,000 Date Account Titles & Explanation 1-Apr Cash Capital (Owner's investment of cash in business) $ 18,000 1-Apr NO entry required (Hired a secretary-receptionist) $ 1,200 2-Apr Prepaid rent Cash $ 1,200 3-Apr Dental supplies Dazzle Company $ 3,300 $ 3,300 5,200 10-Apr Accounts receivable Service revenue $ 5,200 1,400 11-Apr Cash Unearned revenue $ 1,400

$ 1,600 20-Apr Cash Service revenue $ 1,600 $ 2,400 30-Apr Salary Cash (paid monthly salary) $ 2,400 2,180 30-Apr Accounts payable Cash (paid Dazzle company on account) $ 2,180