For the past several years, Dustin Larkin has operated a part-time consulting bu

Question

For the past several years, Dustin Larkin has operated a part-time consulting business from his home. As of June 1, 2010, Dustin decided to move to rented quarters and to operate the business, which was to be known as Quixote Consulting, on a full-time basis. Quixote Consulting entered into the following transactions during June: June 1. The following assets were received from Dustin Larkin: cash, $10,000; accounts receivable, $1,500; supplies, $1,250; and office equipment, $7,500. There were no liabilities received. June 1. Paid three months' rent on a lease rental contract, $4,500. June 2. Paid the premiums on property and casualty insurance policies, $1,800. June 4. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees,

Explanation / Answer

I assume you want journal entries for these transactions. 6/1 DR Cash 10,000 DR Accts Rec 1,500 DR Supplies 1,250 DR Office Equip 7,500 CR Dustin Larkin, Capital 20,250 6/1 DR Prepaid rent 4,500 CR Cash 4,500 6/2 DR Prepaid Insurance 1,800 CR Cash 1,800 6/4 DR Cash xxxxx CR Unearned Revenues xxxxxxx (Didn't give amounts)

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