For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 2014, Steffy decided to move to rented quarters and to operate business, which was to be known as Diamond Consulting, on a full-time basis. Diamond Consulting entered into the following transactions during July: Transactions: July 1 The following assets were received from Steffy Lopez: Cash 13,500; accounts receivable, 20,800; supplies, 3,200; and office equipment, 7,500. There were no liabilities 1 Paid two months’ rent on a lease rental contract, 4800 2 Paid the premiums on property and casualty insurance policies, 4500 4 Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, 5500 5 Purchased additional office equipment on account from Office Station Co., 6500 6 Received cash from clients on account, 15300 10 Paid cash for a newspaper advertisement, 400 12 Paid Office Station Co. for part of the debt incurred on July 5, 5200 12 Recorded services provided on account for the period July 1 – 12, 13300 14 Paid receptionists for two weeks’ salary, 1750 Record the following transactions on Page 2 of the Journal 17 Recorded cash from cash clients for fees earned during the period July 1 – 17, 9450 18 Paid cash for supplies, 600 20 Recorded services provided on account for the period July 13 – 20, 6650 24 Recorded cash from cash clients for fees earned for the period July 17 – 24, 4000 26 Received cash from clients on account, 12000 27 Paid receptionist for two weeks salary, 1750 29 Paid telephone bill for July, 325 31 Paid electricity bill for July, 675 31 Recorded cash from cash clients for fees earned for the period July 25 – 31, 5200 31 Recorded services provided on account for the remainder of July, 3000 31 Steffy withdrew 12,500 for personal use Instructions: (Write your answer on a separate sheet) Journalize each transaction in a two-column journal starting on July 1, refer to the following chart of accounts in selecting the accounts to be debited and credited (do not insert the account number in the journal at this time). 11 Cash 31 Steffy Lopez, Capital 12 Accounts Receivable 32 Steffy Lopez, Drawing 14 Supplies 41 Fees Earned 15 Prepaid Rent 51 Salaries 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
For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 2014, Steffy decided to move to rented quarters and to operate business, which was to be known as Diamond Consulting, on a full-time basis. Diamond Consulting entered into the following transactions during July:
Transactions:
July 1 The following assets were received from Steffy Lopez: Cash 13,500;
1 Paid two months’ rent on a lease rental contract, 4800
2 Paid the premiums on property and casualty insurance policies, 4500
4 Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, 5500
5 Purchased additional office equipment on account from Office Station Co., 6500
6 Received cash from clients on account, 15300
10 Paid cash for a newspaper advertisement, 400
12 Paid Office Station Co. for part of the debt incurred on July 5, 5200
12 Recorded services provided on account for the period July 1 – 12, 13300
14 Paid receptionists for two weeks’ salary, 1750
Record the following transactions on Page 2 of the Journal
17 Recorded cash from cash clients for fees earned during the period July 1 – 17, 9450
18 Paid cash for supplies, 600
20 Recorded services provided on account for the period July 13 – 20, 6650
24 Recorded cash from cash clients for fees earned for the period July 17 – 24, 4000
26 Received cash from clients on account, 12000
27 Paid receptionist for two weeks salary, 1750
29 Paid telephone bill for July, 325
31 Paid electricity bill for July, 675
31 Recorded cash from cash clients for fees earned for the period July 25 – 31, 5200
31 Recorded services provided on account for the remainder of July, 3000
31 Steffy withdrew 12,500 for personal use
Instructions: (Write your answer on a separate sheet)
- Journalize each transaction in a two-column journal starting on July 1, refer to the following chart of accounts in selecting the accounts to be debited and credited (do not insert the account number in the journal at this time).
11 Cash 31 Steffy Lopez, Capital
12 Accounts Receivable 32 Steffy Lopez, Drawing
14 Supplies 41 Fees Earned
15 Prepaid Rent 51 Salaries Expense
16 Prepaid Insurance 52 Rent Expense
18 Office Equipment 53 Supplies Expense
19 Accumulated
21 Accounts Payable 55 Insurance Expense
22 Salaries Payable 59 Miscellaneous Expense
23 Unearned Fees
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