For the past several years, Susan Wells has operated a part-timeconsulting busin
ID: 2457993 • Letter: F
Question
For the past several years, Susan Wells has operated a part-timeconsulting business from her home. As of Sept. 1, 2007, Susandecided to move to rented quarters and to operate the business,which was to be known as Canyon Consulting, on a full-timebasis. Canyon Consulting entered into the followingtransactions during September:
Sept.
1.
The following assets were received from Susan Wells: cash$13,900; accounts receivable $4,000; supplies $1,500 and officeequipment $17,500. There were no liabilities received.
1.
Paid three months’ rent on a lease rental contract,$4,800.
2.
Paid the premiums on property & casualty insurance policies,$1,800.
4.
Received cash from clients as an advance payment for services tobe provided and recorded it as unearned fees, $5,000.
5.
Purchased additional office equipment on account from KaibabEnterprises, $2,000.
6.
Received cash from clients on account, $1,800.
10.
Paid cash for a newspaper advertisement, $120.
12.
Paid Kaibab Enterprises for part of the debt incurred on Sept.5, $1,200.
12.
Recorded services provided on account for the period, Sept.1-12, $4,200.
14.
Paid part-time receptionist for two weeks salary, $850.
17.
Recorded cash from cash clients for fees earned during theperiod Sept. 1-16, $6,250.
18.
Paid cash for supplies, $900.
20.
Recorded services provided on account for the period Sept.13-20, $2,100.
24.
Recorded cash from cash clients for fees earned for the periodSept. 17-24, $3,850.
26.
Received cash from clients on account, $5,700.
27.
Paid part-time receptionist for two weeks’ salary,$850.
29.
Paid telephone bill for September, $180.
30.
Paid electricity bill for September, $250.
30.
Recorded cash from cash clients for fees earned for the periodSeptember 25-30, $3,050.
30.
Recorded services provided on account for the remainder ofSeptember, $1,500.
30.
Susan withdrew $7,000 for personal use.
11
Cash
31
Susan Wells, Capital
12
Accounts Receivable
32
Susan Wells, Drawing
14
Supplies
41
Fees Earned
15
Prepaid Rent
51
Salary Expense
16
Prepaid Insurance
52
Rent Expense
18
Office Equipment
53
Supplies Expense
19
Accumulated Depreciation
54
Depreciation Expense
21
Accounts Payable
55
Insurance Expense
22
Salaries Payable
59
Miscellaneous Expense
23
Unearned Fees
Sept.
1.
The following assets were received from Susan Wells: cash$13,900; accounts receivable $4,000; supplies $1,500 and officeequipment $17,500. There were no liabilities received.
1.
Paid three months’ rent on a lease rental contract,$4,800.
2.
Paid the premiums on property & casualty insurance policies,$1,800.
4.
Received cash from clients as an advance payment for services tobe provided and recorded it as unearned fees, $5,000.
5.
Purchased additional office equipment on account from KaibabEnterprises, $2,000.
6.
Received cash from clients on account, $1,800.
10.
Paid cash for a newspaper advertisement, $120.
12.
Paid Kaibab Enterprises for part of the debt incurred on Sept.5, $1,200.
12.
Recorded services provided on account for the period, Sept.1-12, $4,200.
14.
Paid part-time receptionist for two weeks salary, $850.
17.
Recorded cash from cash clients for fees earned during theperiod Sept. 1-16, $6,250.
18.
Paid cash for supplies, $900.
20.
Recorded services provided on account for the period Sept.13-20, $2,100.
24.
Recorded cash from cash clients for fees earned for the periodSept. 17-24, $3,850.
26.
Received cash from clients on account, $5,700.
27.
Paid part-time receptionist for two weeks’ salary,$850.
29.
Paid telephone bill for September, $180.
30.
Paid electricity bill for September, $250.
30.
Recorded cash from cash clients for fees earned for the periodSeptember 25-30, $3,050.
30.
Recorded services provided on account for the remainder ofSeptember, $1,500.
30.
Susan withdrew $7,000 for personal use.
Explanation / Answer
For the past several years, Susan Wells has operated a part-timeconsulting busin