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Transaction Analysis Service Company Christine Ewing is a licensed CPA. During the first month of operations of her business a sole proprietorship the following events and transactions occurred

Transaction Analysis–Service Company) Christine Ewing is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following events and transactions occurred. April 2 Invested $35,197 cash and equipment valued at $18,933 in the business. 2 Hired a secretary-receptionist at a salary of $290 per week payable monthly. 3 Purchased supplies on account $712. (Debit an asset account.) 7 Paid office rent of $684 for the month. 11 Completed a tax assignment and billed client $1,555 for services rendered. (Use Service Revenue account.

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(Transaction Analysis–Service Company) Christine Ewing is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following events and transactions occurred. April 2Invested $35,197 cash and equipment valued at $18,933 in the business.2Hired a secretary-receptionist at a salary of $290 per week payable monthly.3Purchased supplies on account $712. (Debit an asset account.)7Paid office rent of $684 for the month.11Completed a tax assignment and billed client $1,555 for services rendered. (Use Service Revenue account.)12Received $3,483 advance on a management consulting engagement. 17Received cash of $3,043 for services completed for Ferengi Co.21Paid insurance expense $171.30Paid secretary-receptionist $1,668 for the month.30A count of supplies indicated that $209 of supplies had been used.30Purchased a new computer for $6,135 with personal funds. (The computer will be used exclusively for business purposes.)Journalize the transactions in the general journal. (If no entry is required, enter No entry as the account and 0 for the amount. List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) DateDescription/AccountDebitCreditApr. 2 Apr. 2Apr. 3Apr. 7Apr. 11Apr. 12 Apr. 17Apr. 21 Apr. 30Apr. 30Apr. 30 (Corrected Trial Balance) The trial balance of Geronimo Company does not balance. Your review of the ledger reveals the following: (a) Each account had a normal balance. (b) The debit footings in Prepaid Insurance, Accounts Payable, and Property Tax Expense were each understated $1,000. (c) A transposition error was made in Accounts Receivable and Service Revenue; the correct balances for Accounts Receivable and Service Revenue are $2,750 and $6,690, respectively. (d) A debit posting to Advertising Expense of $300 was omitted. (e) A...

Jun 23 2020 View more View Less

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