cenario: 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. 2. Paid three (3) months rent on a lease rental contract, $3,600. 3. Paid the premiums on the property and peril insurance policies, $1,500. 4. Received cash from clients as an advance payment for services to be provided in the coming months, $3,500. 5. Purchased additional office equipment on account from Payne Company, $1,800. 6. Received cash from clients on account, $800. 10. Paid cash for newspaper advertisement, $120. 12. Paid Payne Company a portion of the debt incurred on September 5, $800. 12. Recorded services provided on account for the period September 1 -12, $1,200. 13. Paid part-time receptionist for two weeks’ salary, $400. 17. Recorded cash from cash clients for fees earned during the first half of September, $2,100. 18. Paid cash for supplies, $750. 20. Recorded services provided on account for the period September 13-20, $1,100. 24. Recorded cash from cash clients for fees earned for the period September 17-24, $1,850. 25. Received cash from clients on account, $1,300. 27. Paid part-time receptionist for two weeks salary, $400. 29. Paid telephone bill for September, $130. 30. Paid electricity bill for September, $200. 30. Recorded cash from cash clients for fees earned for the period September 25-30, $1,050. 30. Recorded services provided on account for the remainder of September, $500. 4. The company presented the following adjustments and require you to preparing the adjusting entries in the general journal (Narration required for each journal entry): i. Insurance expired during September, $125. ii. Supplies on hand on September 30, $1,250. iii. Accrued receptionist salary on September 30, $120 iv. Rent expired during September, $800. v. Unearned fees on September 30 are $1,200. 5. Post the adjusting entries to their respective ledger accounts
Scenario:
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,
2. Paid three (3) months rent on a lease rental contract, $3,600.
3. Paid the premiums on the property and peril insurance policies, $1,500.
4. Received cash from clients as an advance payment for services to be provided in the coming months, $3,500.
5. Purchased additional office equipment on account from Payne Company, $1,800.
6. Received cash from clients on account, $800.
10. Paid cash for newspaper advertisement, $120.
12. Paid Payne Company a portion of the debt incurred on September 5, $800.
12. Recorded services provided on account for the period September 1 -12, $1,200.
13. Paid part-time receptionist for two weeks’ salary, $400.
17. Recorded cash from cash clients for fees earned during the first half of September, $2,100.
18. Paid cash for supplies, $750.
20. Recorded services provided on account for the period September 13-20, $1,100.
24. Recorded cash from cash clients for fees earned for the period September 17-24, $1,850.
25. Received cash from clients on account, $1,300.
27. Paid part-time receptionist for two weeks salary, $400.
29. Paid telephone bill for September, $130.
30. Paid electricity bill for September, $200.
30. Recorded cash from cash clients for fees earned for the period September 25-30, $1,050.
30. Recorded services provided on account for the remainder of September, $500.
4. The company presented the following adjustments and require you to preparing the
i. Insurance expired during September, $125.
ii. Supplies on hand on September 30, $1,250.
iii. Accrued receptionist salary on September 30, $120
iv. Rent expired during September, $800.
v. Unearned fees on September 30 are $1,200.
5.
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