For the past several years, Angela Smith operated a part-time consulting business from her home. As of September 1, 2020, Angela decided to move to rented quarters and to operate the business on a full-time basis. She has registered the business as Interactive Consulting Ltd but has no prior knowledge of accounting and has approached a member of your group for advice. The company entered the following transactions during September: Sept 1. The following assets were received from Angela Smith in exchange for capital of Interactive Consulting Ltd: cash - $7,050, accounts receivable - $1,500, supplies - $1,250, and office equipment - $7,200. There were no liabilities received. Paid three (3) months rent on a lease rental contract, $3,600. Paid the premiums on the property and peril insurance policies, $1,500. Received cash from clients as an advance payment for services to be provided in the coming months, $3,500. Purchased additional office equipment on account from Payne Company, $1,800. Received cash from clients on account, $800. Paid cash for newspaper advertisement, $120. Paid Payne Company a portion of the debt incurred on September 5, $800. Recorded services provided on account for the period September 1 -12, $1,200. Paid part-time receptionist for two weeks’ salary, $400. Recorded cash from cash clients for fees earned during the first half of September, $2,100. Paid cash for supplies, $750. Recorded services provided on account for the period September 13-20, $1,100. Recorded cash from cash clients for fees earned for the period September 17-24, $1,850. Received cash from clients on account, $1,300. Paid part-time receptionist for two weeks salary, $400. Paid telephone bill for September, $130. Paid electricity bill for September, $200. Recorded cash from cash clients for fees earned for the period September 25-30, $1,050. Recorded services provided on account for the remainder of September, $500. Question: see attachment

For the past several years, Angela Smith operated a part-time consulting business from her home. As of September 1, 2020, Angela decided to move to rented quarters and to operate the business on a full-time basis. She has registered the business as Interactive Consulting Ltd but has no prior knowledge of accounting and has approached a member of your group for advice. The company entered the following transactions during September: Sept 1. The following assets were received from Angela Smith in exchange for capital of Interactive Consulting Ltd: cash - $7,050, accounts receivable - $1,500, supplies - $1,250, and office equipment - $7,200. There were no liabilities received. Paid three (3) months rent on a lease rental contract, $3,600. Paid the premiums on the property and peril insurance policies, $1,500. Received cash from clients as an advance payment for services to be provided in the coming months, $3,500. Purchased additional office equipment on account from Payne Company, $1,800. Received cash from clients on account, $800. Paid cash for newspaper advertisement, $120. Paid Payne Company a portion of the debt incurred on September 5, $800. Recorded services provided on account for the period September 1 -12, $1,200. Paid part-time receptionist for two weeks’ salary, $400. Recorded cash from cash clients for fees earned during the first half of September, $2,100. Paid cash for supplies, $750. Recorded services provided on account for the period September 13-20, $1,100. Recorded cash from cash clients for fees earned for the period September 17-24, $1,850. Received cash from clients on account, $1,300. Paid part-time receptionist for two weeks salary, $400. Paid telephone bill for September, $130. Paid electricity bill for September, $200. Recorded cash from cash clients for fees earned for the period September 25-30, $1,050. Recorded services provided on account for the remainder of September, $500. Question: see attachment

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter4: Journalizing And Posting Transactions

Section: Chapter Questions

Problem 3SEA: GENERAL LEDGER ACCOUNTS Set up T accounts for each of the general ledger accounts needed for...

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Question

Sept 1. The following assets were received from Angela Smith in exchange for capital of Interactive Consulting Ltd: cash - $7,050, accounts receivable - $1,500, supplies - $1,250, and office equipment - $7,200. There were no liabilities received.

Paid three (3) months rent on a lease rental contract, $3,600.
Paid the premiums on the property and peril insurance policies, $1,500.
Received cash from clients as an advance payment for services to be provided in the coming months, $3,500.
Purchased additional office equipment on account from Payne Company, $1,800.
Received cash from clients on account, $800.
Paid cash for newspaper advertisement, $120.
Paid Payne Company a portion of the debt incurred on September 5, $800.
Recorded services provided on account for the period September 1 -12, $1,200.
Paid part-time receptionist for two weeks’ salary, $400.
Recorded cash from cash clients for fees earned during the first half of September, $2,100.
Paid cash for supplies, $750.
Recorded services provided on account for the period September 13-20, $1,100.
Recorded cash from cash clients for fees earned for the period September 17-24, $1,850.
Received cash from clients on account, $1,300.
Paid part-time receptionist for two weeks salary, $400.
Paid telephone bill for September, $130.
Paid electricity bill for September, $200.
Recorded cash from cash clients for fees earned for the period September 25-30, $1,050.
Recorded services provided on account for the remainder of September, $500.

Question: see attachment

Requirement:
1. Journalize each transaction in the general journal referring to the following chart of accounts in selecting the
accounts to be debited and credited and include a narration for each transaction:
Account #
Account Name
11
Cash
12
Accounts Receivables
14
Supplies
15
Prepaid Rent
16
Prepaid Insurance
18
Office Equipment
21
Accounts Payable
22
Salaries Payable
23
Unearned Fees
31
Capital Stock
41
Fees Earned
51
Salary Expense
52
Rent Expense
53
Supplies Expense
54
Insurance Expense
55
Utilities Expense
56
Advertising Expense
2. Post the journal entries to their respective ledger accounts.
3. Prepare a trial balance based on the balances derived after completing requirement #2.

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