Question

Exercise 3-1 Pina 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 $37,300 cash and equipment valued at $14,850 in the business. 2 Hired an administrative assistant at a salary of $239 per week payable monthly. 3 Purchased supplies on account $585. (Debit an asset account.) 7 Paid office rent of $545 for the month 11 Completed a tax assignment and billed client $1,084 for services rendered. (Use Service Revenue account.) 12 Received $3,024 advance on a management consulting engagement. 17 Received cash of $2,695 for services completed for Ferengi Co. 21 Paid insurance expense $98. 30 Paid administrative assistant $956 for the month. 30 A count of supplies indicated that $121 of supplies had been used 30 Purchased a new computer for $7,115 with personal funds. (The computer will be used exclusively for business purposes.)

Answer 1

Journal entries

Date	account and explanation	Debit	credit
Apr 2	Cash	37300
	Equipment	14850
	Owner's capital		52150
Apr 2	No entry
Apr 3	Supplies	585
	Account payable		585
Apr 7	Rent expense	545
	Cash		545
Apr 11	Account receivable	1084
	Service revenue		1084
Apr 12	Cash	3024
	Unearned revenue		3024
Apr 17	Cash	2695
	Service revenue		2695
Apr 21	Insurance expense	98
	Cash		98
Apr 30	Salaries expense	956
	Cash		956
Apr 30	Supplies expense	121
	Supplies		121
Apr 30	Owner's drawing	7115
	Cash		7115