Jasmine is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following transactions occurred: August 1. Invested $40,000 cash and equipment valued at $20,000 in the business 2. Purchased supplies on account for $2,400. 3. Paid office rent $3,600 for a year. 5. Completed an audit of financial statements and invoiced a client $5,000. 10. Received $4,500 advance payment for a tax assignment. 11. Purchased supplies for $1,200 paying cash. 15. Paid electricity bills for the month $600 (use utility expense). 16. Completed a tax assignment for which money had been received on August 10. 17. Paid water bill for the month $800 cash (use utility expense). 20. Paid insurance for the month $1,900. 22. Received $2,500 from a client who had received services but had not paid. 24. Paid creditors who had supplied on account $1,200 25. Performed services to clients who immediately paid cash of $4,800. 26. Received $7,600 for a consulting assignment to be performed in October. 28. Bought a computer for the business for $2,000 using personal funds. 29. Purchased a vehicle $20,000 for the business. Did not pay cash but issued a note. 30. Withdrew $3,000 cash from the business for personal use (Do not use a drawings account). 31. Paid administrative assistant $4,200 wages for the month. 1 Choose appropriate accounts that you believe Jasmine has in her business chart of accounts and do the following: a. Enter the transactions into a general journal. b. Make postings into the general ledger. c. Prepare a trial balance at the end of the month on August 31. Use Excel to complete this homework and upload onto Canvas.
Jasmine is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following transactions occurred: August 1. Invested $40,000 cash and equipment valued at $20,000 in the business 2. Purchased supplies on account for $2,400. 3. Paid office rent $3,600 for a year. 5. Completed an audit of financial statements and invoiced a client $5,000. 10. Received $4,500 advance payment for a tax assignment. 11. Purchased supplies for $1,200 paying cash. 15. Paid electricity bills for the month $600 (use utility expense). 16. Completed a tax assignment for which money had been received on August 10. 17. Paid water bill for the month $800 cash (use utility expense). 20. Paid insurance for the month $1,900. 22. Received $2,500 from a client who had received services but had not paid. 24. Paid creditors who had supplied on account $1,200 25. Performed services to clients who immediately paid cash of $4,800. 26. Received $7,600 for a consulting assignment to be performed in October. 28. Bought a computer for the business for $2,000 using personal funds. 29. Purchased a vehicle $20,000 for the business. Did not pay cash but issued a note. 30. Withdrew $3,000 cash from the business for personal use (Do not use a drawings account). 31. Paid administrative assistant $4,200 wages for the month. 1 Choose appropriate accounts that you believe Jasmine has in her business chart of accounts and do the following: a. Enter the transactions into a general journal. b. Make postings into the general ledger. c. Prepare a trial balance at the end of the month on August 31. Use Excel to complete this homework and upload onto Canvas.
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process
Section: Chapter Questions
Problem 51RSCQ: Ray, the owner of a small company, asked Holmes, CPA, to conduct an audit of the company’s records....
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Transcribed Image Text:Jasmine is a licensed CPA. During the first month of operations of her business (a sole
proprietorship), the following transactions occurred:
August 1. Invested $40,000 cash and equipment valued at $20,000 in the business
2. Purchased supplies on account for $2,400.
3. Paid office rent $3,600 for a year.
5. Completed an audit of financial statements and invoiced a client $5,000.
10. Received $4,500 advance payment for a tax assignment.
11. Purchased supplies for $1,200 paying cash.
15. Paid electricity bills for the month $600 (use utility expense).
16. Completed a tax assignment for which money had been
received on August 10.
17. Paid water bill for the month $800 cash (use utility expense).
20. Paid insurance for the month $1,900.
22. Received $2,500 from a client who had received services but had not
paid.
24. Paid creditors who had supplied on account $1,200
25. Performed services to clients who immediately paid cash of $4,800.
26. Received $7,600 for a consulting assignment to be performed in
October.
28. Bought a computer for the business for $2,000 using personal funds.
29. Purchased a vehicle $20,000 for the business. Did not pay cash but
issued a note.
30. Withdrew $3,000 cash from the business for personal use (Do not use
a drawings account).
31. Paid administrative assistant $4,200 wages for the month.
1
Choose appropriate accounts that you believe Jasmine has in her business chart of
accounts and do the following:
a. Enter the transactions into a general journal.
b. Make postings into the general ledger.
c. Prepare a trial balance at the end of the month on August 31.
Use Excel to complete this homework and upload onto Canvas.
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