令60% My Messages E3.1 (LO 2) (Transaction Analysis-Service Company) Beverly Crusher is a licensed CPA. Dur- ing the first month of operations of her business (a sole proprietorship), the following events and trans- actions occurred. Invested $32,000 cash and equipment valued at $14,000 in the business. Hired an administrative assistant at a salary of $290 per week payable monthly. Purchased supplies on account $700. (Debit an asset account.) Paid office rent of $600 for the month. April 2 3 7. Completed a tax assignment and billed client $1,100 for services rendered. (Use Service Revenue account.) Received $3,200 advance on a management consulting engagement. 11 12 Received cash of $2,300 for services completed for Ferengi Co. Paid insurance expense $110. 17 21 Paid administrative assistant $1,160 for the month. 30 A count of supplies indicated that $120 of supplies had been used. Purchased a new computer for $6,100 with personal funds. (The computer will be used exclusively for business purposes.) 30 30 Instructions Journalize the transactions in the general journal. (Omit explanations.) E3.2 (LO 2) (Corrected Trial Balance) The following trial balance of Wanda Landowska 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 $100. (c) A transposition error was made in Ac- counts Receivable and Service Revenue; the correct balances for Accounts Receivable and Ser- vice Revenue are $2,750 and $6,690, respectively. (d) A debit posting to Advertising Expense of $300 was omitted. (e) A $1,500 cash drawing by the owner was debited to Owner's Capital and credited to Cash.
令60% My Messages E3.1 (LO 2) (Transaction Analysis-Service Company) Beverly Crusher is a licensed CPA. Dur- ing the first month of operations of her business (a sole proprietorship), the following events and trans- actions occurred. Invested $32,000 cash and equipment valued at $14,000 in the business. Hired an administrative assistant at a salary of $290 per week payable monthly. Purchased supplies on account $700. (Debit an asset account.) Paid office rent of $600 for the month. April 2 3 7. Completed a tax assignment and billed client $1,100 for services rendered. (Use Service Revenue account.) Received $3,200 advance on a management consulting engagement. 11 12 Received cash of $2,300 for services completed for Ferengi Co. Paid insurance expense $110. 17 21 Paid administrative assistant $1,160 for the month. 30 A count of supplies indicated that $120 of supplies had been used. Purchased a new computer for $6,100 with personal funds. (The computer will be used exclusively for business purposes.) 30 30 Instructions Journalize the transactions in the general journal. (Omit explanations.) E3.2 (LO 2) (Corrected Trial Balance) The following trial balance of Wanda Landowska 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 $100. (c) A transposition error was made in Ac- counts Receivable and Service Revenue; the correct balances for Accounts Receivable and Ser- vice Revenue are $2,750 and $6,690, respectively. (d) A debit posting to Advertising Expense of $300 was omitted. (e) A $1,500 cash drawing by the owner was debited to Owner's Capital and credited to Cash.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:令60%
My Messages
E3.1 (LO 2) (Transaction Analysis-Service Company) Beverly Crusher is a licensed CPA. Dur-
ing the first month of operations of her business (a sole proprietorship), the following events and trans-
actions occurred.
Invested $32,000 cash and equipment valued at $14,000 in the business.
Hired an administrative assistant at a salary of $290 per week payable monthly.
Purchased supplies on account $700. (Debit an asset account.)
Paid office rent of $600 for the month.
April 2
3
7.
Completed a tax assignment and billed client $1,100 for services rendered. (Use Service
Revenue account.)
Received $3,200 advance on a management consulting engagement.
11
12
Received cash of $2,300 for services completed for Ferengi Co.
Paid insurance expense $110.
17
21
Paid administrative assistant $1,160 for the month.
30
A count of supplies indicated that $120 of supplies had been used.
Purchased a new computer for $6,100 with personal funds. (The computer will be
used exclusively for business purposes.)
30
30
Instructions
Journalize the transactions in the general journal. (Omit explanations.)
E3.2 (LO 2) (Corrected Trial Balance) The following trial balance of Wanda Landowska
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 $100. (c) A transposition error was made in Ac-
counts Receivable and Service Revenue; the correct balances for Accounts Receivable and Ser-
vice Revenue are $2,750 and $6,690, respectively. (d) A debit posting to Advertising Expense of
$300 was omitted. (e) A $1,500 cash drawing by the owner was debited to Owner's Capital and
credited to Cash.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education