For the past several years, Jeff Horton has operated a part-time consulting busi
ID: 2476253 • Letter: F
Question
For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 2016, Jeff decided to move to rented quarters and to operate the business, which was to be known as Rosebud Consulting, on a full-time basis. Rosebud Consulting entered into the following transactions during April:
Record the following transactions on Page 2 of the journal:
Apr. 1 The following assets were received from Jeff Horton in exchange for common stock: cash, $20,000; accounts receivable, $14,700; supplies, $3,300; and office equipment, $12,000. There were no liabilities received. 1 Paid three months’ rent on a lease rental contract, $6,000. 2 Paid the premiums on property and casualty insurance policies, $4,200. 4 Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $9,400. 5 Purchased additional office equipment on account from Smith Office Supply Co., $8,000. 6 Received cash from clients on account, $11,700. 10 Paid cash for a newspaper advertisement, $350. 12 Paid Smith Office Supply Co. for part of the debt incurred on April 5, $6,400. 12 Recorded services provided on account for the period April 1–12, $21,900. 14 Paid receptionist for two weeks’ salary, $1,650.Explanation / Answer
I have completed Journal entries for all transactions and Adjusting entries.
For remaining parts, please post a new question.
Jeff Horton JOURNAL Page 1 Date Account Debit Credit Apr. 1 Cash $20,000 Accounts Receivable $14,700 Supplies $3,300 Office Equipment $12,000 Common Stock $50,000 Apr. 1 Prepaid Rent $6,000 Cash $6,000 Apr. 2 Prepaid Insurance $4,200 Cash $4,200 Apr. 4 Cash $9,400 Unearned Revenue $9,400 Apr. 5 Office Equipment $8,000 Accounts Payable $8,000 Apr. 6 Cash $11,700 Accounts Receivable $11,700 Apr. 10 Advertising Expense $350 Cash $350 Apr. 12 Accounts Payable $6,400 Cash $6,400 Apr. 12 Accounts Receivable $21,900 Sercive revenue $21,900 Apr. 14 Salary Expense $1,650 Cash $1,650 JOURNAL Page 2 Date Account Debit Credit Apr. 17 Cash $6,600 Sercive revenue $6,600 Apr. 18 Supplies $725 Cash $725 Apr. 20 Accounts Receivable $16,800 Sercive revenue $16,800 Apr. 24 Cash $4,450 Sercive revenue $4,450 Apr. 26 Cash $26,500 Accounts Receivable $26,500 Apr. 27 Salary Expense $1,650 Cash $1,650 Apr. 29 Telephone Expense $540 Cash $540 Apr. 30 Electricity Expense $760 Cash $760 Apr. 30 Cash $5,160 Sercive revenue $5,160 Apr. 30 Accounts Receivable $2,590 Sercive revenue $2,590 Apr. 30 Dividends $18,000 Cash $18,000 ADJUSTING ENTRIES JOURNAL Page 3 Date Account Debit Credit Apr. 30 Insurance Expense $350 Prepaid Insurance $350 Apr. 30 Supplies Expenese $2,800 Supplies $2,800 Apr. 30 Depreciation Expense $400 Accumulated Depreciation - Equipment $400 Apr. 30 Salary Expense $275 Salary Payable $275 Apr. 30 Rent Expense $2,000 Prepaid Rent $2,000 Apr. 30 Unearned Fees $7,050 Service revenue $7,050