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On April 1, 2019, Betty Booth incorporated a consulting business known as Booth Consulting. Booth Consulting entered into the following transactions during April: Apr. 1. Betty Booth contributed $18,000 cash for 2,000 shares of common stock. 1. Borrowed $12,000 on a notes payable from the bank. The principal and interest at 6% are due June 30, 2019. 1. Purchased supplies, $1,400 and office equipment, $10,500 for cash. 1. Paid four months' rent on a lease rental contract, $4,800. 2. Paid the premium on a three-month property and casualty insurance policy, $2,100.

On April 1, 2019, Betty Booth incorporated a consulting business known as Booth Consulting. Booth Consulting entered into the following transactions during April: Apr. 1. Betty Booth contributed $18,000 cash for 2,000 shares of common stock. 1. Borrowed $12,000 on a notes payable from the bank. The principal and interest at 6% are due June 30, 2019. 1. Purchased supplies, $1,400 and office equipment, $10,500 for cash. 1. Paid four months' rent on a lease rental contract, $4,800. 2. Paid the premium on a three-month property and casualty insurance policy, $2,100.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On April 1, 2019, Betty Booth incorporated a consulting business known as Booth Consulting. Booth Consulting entered into the following transactions during April: Apr. 1. Betty Booth contributed $18,000 cash for 2,000 shares of common stock. 1. Borrowed $12,000 on a notes payable from the bank. The principal and interest at 6% are due June 30, 2019. 1. Purchased supplies, $1,400 and office equipment, $10,500 for cash. 1. Paid four months' rent on a lease rental contract, $4,800. 2. Paid the premium on a three-month property and casualty insurance policy, $2,100. 4. Received cash from clients as an advanct payment for services to be provided and recorded it as unearned revenue, $6,000. 5. Purchased additional office equipment on account from Office Station Co., $2,000. 6. Provided consulting services on account, $4,700. 10. Paid cash for an April newspaper advertisement, $120. 12. Paid Office Station Co. for part of the debt incurred on April 5, $1,200. 12. Provided consulting services on account, $4,200. 14. Paid part-time receptionist for two weeks' salary, $750. 17. Recorded cash from cash clients for service revenue, $6,250. 18. Paid cash for supplies, $900. 20. Provided consulting services on account, $2,100. 24. Recorded cash from cash clients for service revenue, $3,850. 26. Received cash from clients on accounts, $5,600. 27. Paid part-time receptionist for two weeks' salary, $750. 29. Paid telephone bill for April, $330. 30. Paid electricity bill for April, $250. 30. Recorded cash from cash clients for service revenue, $3,250. 30. Provided consulting services on account, $1,500. 30. Paid Betty Booth a $5,000 Dividend.
Transcribed Image Text:On April 1, 2019, Betty Booth incorporated a consulting business known as Booth Consulting. Booth Consulting entered into the following transactions during April: Apr. 1. Betty Booth contributed $18,000 cash for 2,000 shares of common stock. 1. Borrowed $12,000 on a notes payable from the bank. The principal and interest at 6% are due June 30, 2019. 1. Purchased supplies, $1,400 and office equipment, $10,500 for cash. 1. Paid four months' rent on a lease rental contract, $4,800. 2. Paid the premium on a three-month property and casualty insurance policy, $2,100. 4. Received cash from clients as an advanct payment for services to be provided and recorded it as unearned revenue, $6,000. 5. Purchased additional office equipment on account from Office Station Co., $2,000. 6. Provided consulting services on account, $4,700. 10. Paid cash for an April newspaper advertisement, $120. 12. Paid Office Station Co. for part of the debt incurred on April 5, $1,200. 12. Provided consulting services on account, $4,200. 14. Paid part-time receptionist for two weeks' salary, $750. 17. Recorded cash from cash clients for service revenue, $6,250. 18. Paid cash for supplies, $900. 20. Provided consulting services on account, $2,100. 24. Recorded cash from cash clients for service revenue, $3,850. 26. Received cash from clients on accounts, $5,600. 27. Paid part-time receptionist for two weeks' salary, $750. 29. Paid telephone bill for April, $330. 30. Paid electricity bill for April, $250. 30. Recorded cash from cash clients for service revenue, $3,250. 30. Provided consulting services on account, $1,500. 30. Paid Betty Booth a $5,000 Dividend.
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