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For the past several years Jeff Horton has operated a part time consulting business from his home As of April 1 2019 Jeff decided to move to rented quarters and to operate the business

For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 2019, 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:

Apr. 1.   The following assets were received from Jeff Horton: 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.   Provided services on account for the period April 1-12, $21,900.
14.   Paid receptionist for two weeks' salary, $1,650.

 Record the following transactions on Page 2 of the journal:

17.   Received cash from cash clients for fees earned during the period April 1-16, $6,600.
18.   Paid cash for supplies, $725.
20.   Provided services on account for the period April 13-20, $16,800.
24.   Received cash from cash clients for fees earned for the period April 17-24, $4,450.
26.   Received cash from clients on account, $26,500.
27.   Paid receptionist for two weeks' salary, $1,650.
29.   Paid telephone bill for April, $540.
30.   Paid electricity bill for April, $760.
30.   Received cash from cash clients for fees earned for the period April 25-30, $5,160.
30.   Provided services on account for the remainder of April, $2,590.
30.   Jeff withdrew $18,000 for personal use.

Instructions

 

1. Journalize each transaction in a two-column journal starting on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)

11 Cash 31 Jeff Horton, Capital
12 Accounts Receivable 32 Jeff Horton, Drawing
14 Supplies 41 Fees Earned
15 Prepaid Rent 51 Salary Expense
16 Prepaid Insurance 52 Supplies Expense
18 Office Equipment 53 Rent Expense
19 Accumulated Depreciation—Office Equipment 54 Depreciation Expense
21 Accounts Payable 55 Insurance Expense
22 Salaries Payable 59 Miscellaneous Expense
23 Unearned Fees    

Apr 12 2021 View more View Less

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