Question

For the past several years, Aaron Jones has operated a consulting business from his home on a part-time basis. As of December 1, 20X1, Aaron decided to move to rented quarters and incorporate his business as Progress Consulting Inc. Progress Consulting entered into the following transactions during December: 12/1 Aaron Jones invested the following assets in the business: cash, $54,000; supplies, $12,000; and office equipment, $50,000. Mr. Jones received stock in an amount equal to his investment in the corporation. 12/2 Paid $9,000 for rent for December 20X1 through February 28, 20X2. 12/3 Paid $15,600 for a one year premium on property and casualty insurance. The policy covers the period December 1, 20X1 to November 30, 20X2. 12/4 Received $16,000 cash from a client as an advance payment for services to be performed in the future. 12/5 Purchased additional office equipment on account from Payne Company for $20,000. 12/10 Paid $9,000 for a newspaper advertisement that ran in today's paper. 12/11 Paid Payne Company $3,000 for part of the debt incurred on December 5. 12/12 Billed clients for services performed on account, $5,800. 12/17 Received cash payment from client for services performed on this date, $15,000. 12/18 Paid $4,000 for supplies. 12/20 Billed clients for services performed on account, $16,000. 12/24 Received cash payment from client for services performed on this date, $4,000. 12/25 Received cash from clients as payment on account, $5,000. 12/30 Paid $950 for utilities for December. 12/31 Paid cash dividend of $5,000. Post above journal entries to the ledger. (Post entries in the order of Journal entry presented in the previous part.)

Answer 1