For the past several years, Emily Page has operated a part-time consulting busin
ID: 2347009 • Letter: F
Question
For the past several years, Emily Page has operated a part-time consulting businessfrom her home. As of June 1, 2010, Emily decided to move to rented quarters and to
operate the business, which was to be known as Bottom Line Consulting, on a full-time
basis. Bottom Line Consulting entered into the following transactions during June:
June 1. The following assets were received from Emily Page: cash, $20,000; accounts
receivable, $4,500; supplies, $2,000; and office equipment, $11,500. There were
no liabilities received.
1. Paid three months
Explanation / Answer
1. Journalize each transaction in a two-column journal, referring to the following chart
of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)
Bottom Line Consulting
Journal
____________________________________________
Description Debit Credit
____________________________________________
June 1 Cash $20,000
Accounts Receivables $4,500
Supplies $2,000
Office Equipment $11,500
Emily Page, Capital $38,000
____________________________________________
June 1 Prepaid Rent $6,000
Cash $6,000
____________________________________________
June 2 Insurance Expense $2,400
Cash $2,400
____________________________________________
June 4 Cash $2,700
Unearned Fees $2,700
____________________________________________
June 5 Office Equipment $3,500
Accounta Payable $3,500
____________________________________________
June 6 Cash $3,000
Accounts Receivables $3,000
____________________________________________
June 10 Miscellaneous Expense $200
Cash $200
____________________________________________
June 12 Accounts Payable $750
Cash $750
____________________________________________
June 12 Accounts Receivable $5,100
Fees Earned $5,100
____________________________________________
June 14 Salary Expense $1,100
Cash $1,100
____________________________________________
June 17 Cash $6,500
Fees Earned $6,500
____________________________________________
June 18 Supplies Expense $750
Cash $750
____________________________________________
June 20 Accounts Receivable $3,100
Fees Earned $3,100
____________________________________________
June 24 Cash $5,150
Fees Earned $5,150
____________________________________________
June 26 Cash $6,900
Accounts Receivables $6,900
____________________________________________
June 27 Salary Expense $1,100
Cash $1,100
____________________________________________
June 29 Miscellaneous Expense $150
Cash $150
____________________________________________
June 29 Miscellaneous Expense $400
Cash $400
____________________________________________
June 30 Cash $2,500
Accounts Receivables $2,500
____________________________________________
June 30 Accounts Receivable $1,000
Fees Earned $1,000
____________________________________________
June 30 Emily Page, Drawing $5,000
Cash $5,000
____________________________________________
2. Post the journal to a ledger of four-column accounts.
Emily Page, Capital
_______________________________________________
Date Description Amount Date Description Amount
________________________________________________
June Ending Balance $38,000 June 1 Cash $20,000
June 1 A/R $4,500
June 1 Supplies $2,000
June 1 Office Equ. $11,500
_________________________________________________
$38,000 $38,000
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On the basis of above you can post entries to other ledger accounts.