Sept 1. The following assets were received from Ralph in exchange for capital of Collins Consignment Sales Company: cash - $19,000, accounts receivable - $2,800, supplies - $2,050, and office equipment - $15,000. There were no liabilities received. 2. Paid three (3) months rent on a lease rental contract, $6,000. 3. Paid the premiums on the property and peril insuranc
Ralph Collins founded Collins Consignment Sales Company and the company was operated from his home. As of September 1, 2021, Collins decided to move to rented quarters and to operate the business on a full-time basis. He wishes to know how much net income the business has earned but has no prior knowledge of accounting and has approached your group for advice. The company entered the following transactions during September:
Sept 1. The following assets were received from Ralph in exchange for capital of Collins Consignment Sales Company: cash - $19,000,
2. Paid three (3) months rent on a lease rental contract, $6,000.
3. Paid the premiums on the property and peril insurance policies, $3,000.
4. Received cash from clients as an advance payment for services to be provided in the coming months, $5,900.
5. Purchased additional office equipment on account from Payne Company, $5,000.
6. Received cash from clients on account, $800.
10. Paid cash for newspaper advertisement, $1,720.
12. Paid Payne Company a portion of the debt incurred on September 5, $2,000.
12. Recorded services provided on account for the period September 1 -12, $1,200.
13. Paid part-time receptionist for two weeks’ salary, at $500 per week.
17. Recorded cash from cash clients for fees earned during the first half of September, $3,000.
18. Paid cash for supplies, $750.
20. Recorded services provided on account for the period September 13-20, $2,100.
24. Recorded cash from cash clients for fees earned for the period September 17-24, $4,850.
25. Received cash from clients on account, $1,300.
27. Paid part-time receptionist for two weeks salary, at $500 per week.
29. Paid telephone bill for September, $2,000.
30. Paid electricity bill for September, $2,800.
30. Recorded cash from cash clients for fees earned for the period September 25-30, $2,000.
30. Recorded services provided on account for the remainder of September, $1,500.
Requirement:
1. Journalize each transaction in the general journal referring to the following chart of accounts in selecting the accounts to be debited and credited and include a narration for each transaction:
Account # Account Name
11 Cash
12 Accounts Receivables
14 Supplies
15 Prepaid Rent
16 Prepaid Insurance
18 Office Equipment
21 Accounts Payable
22 Salaries Payable
23 Unearned Fees
31 Capital-Ralph Collins
41 Fees Earned
51 Salary Expense
52 Rent Expense
53 Supplies Expense
54 Insurance Expense
55 Utilities Expense
56 Advertising Expense
Income Summary
2.
3. Prepare a
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by Bartleby Expert1. The company presented the following adjustments, and you are to prepare the
i. Insurance expired during September, $500.
ii. Supplies on hand on September 30, $1,250.
iii. Accrued receptionist salary on September 30, $500
iv. Rent expired during September, $2,000.
v. Unearned fees on September 30 are $2,900.
2.
3. Prepare the adjusted
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