For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 20Y2, Steffy decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a full-time basis. Diamond entered into the following transactions during July: Jul. 1 The following assets were received from Steffy Lopez in exchange for common stock: cash, $12,500; accounts receivable, $20,800; supplies, $3,100; and office equipment, $7,500. There were no liabilities received. 1 Paid two months’ rent on a lease rental contract, $4,800. 2 Paid the premiums on property and casualty insurance policies, $4,620. 4 Received cash from clients as an advance payment for services to be provided, and recorded it as unearned fees, $5,000. 5 Purchased additional office equipment on account from Office Station Co., $6,500. 6 Received cash from clients on account, $15,100. 10 Paid cash for a newspaper advertisement, $500. 12 Paid Office Station Co. for part of the debt incurred on July 5, $5,200. 12 Recorded services provided on account for the period July 1–12, $13,300. 14 Paid receptionist for two weeks’ salary, $1,700. Record the following transactions on Page 2 of the journal: Jul. 17 Recorded cash from cash clients for fees earned during the period July 1–17, $9,450. 18 Paid cash for supplies, $600. 20 Recorded services provided on account for the period July 13–20, $6,650. 24 Recorded cash from cash clients for fees earned for the period July 17–24, $5,000. 26 Received cash from clients on account, $12,000. 27 Paid receptionist for two weeks’ salary, $1,700. 29 Paid telephone bill for July, $300. 31 Paid electricity bill for July, $675. 31 Recorded cash from cash clients for fees earned for the period July 25–31, $5,400. 31 Recorded services provided on account for the remainder of July, $3,000. 31 Paid dividends, $12,500. 1. Journalize each transaction in a two-column journal starting on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)

For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 20Y2, Steffy decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a full-time basis. Diamond entered into the following transactions during July: Jul. 1 The following assets were received from Steffy Lopez in exchange for common stock: cash, $12,500; accounts receivable, $20,800; supplies, $3,100; and office equipment, $7,500. There were no liabilities received. 1 Paid two months’ rent on a lease rental contract, $4,800. 2 Paid the premiums on property and casualty insurance policies, $4,620. 4 Received cash from clients as an advance payment for services to be provided, and recorded it as unearned fees, $5,000. 5 Purchased additional office equipment on account from Office Station Co., $6,500. 6 Received cash from clients on account, $15,100. 10 Paid cash for a newspaper advertisement, $500. 12 Paid Office Station Co. for part of the debt incurred on July 5, $5,200. 12 Recorded services provided on account for the period July 1–12, $13,300. 14 Paid receptionist for two weeks’ salary, $1,700. Record the following transactions on Page 2 of the journal: Jul. 17 Recorded cash from cash clients for fees earned during the period July 1–17, $9,450. 18 Paid cash for supplies, $600. 20 Recorded services provided on account for the period July 13–20, $6,650. 24 Recorded cash from cash clients for fees earned for the period July 17–24, $5,000. 26 Received cash from clients on account, $12,000. 27 Paid receptionist for two weeks’ salary, $1,700. 29 Paid telephone bill for July, $300. 31 Paid electricity bill for July, $675. 31 Recorded cash from cash clients for fees earned for the period July 25–31, $5,400. 31 Recorded services provided on account for the remainder of July, $3,000. 31 Paid dividends, $12,500. 1. Journalize each transaction in a two-column journal starting on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)

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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Jul.	1	The following assets were received from Steffy Lopez in exchange for common stock: cash, $12,500; accounts receivable, $20,800; supplies, $3,100; and office equipment, $7,500. There were no liabilities received.
	1	Paid two months’ rent on a lease rental contract, $4,800.
	2	Paid the premiums on property and casualty insurance policies, $4,620.
	4	Received cash from clients as an advance payment for services to be provided, and recorded it as unearned fees, $5,000.
	5	Purchased additional office equipment on account from Office Station Co., $6,500.
	6	Received cash from clients on account, $15,100.
	10	Paid cash for a newspaper advertisement, $500.
	12	Paid Office Station Co. for part of the debt incurred on July 5, $5,200.
	12	Recorded services provided on account for the period July 1–12, $13,300.
	14	Paid receptionist for two weeks’ salary, $1,700.

Record the following transactions on Page 2 of the journal:

Jul.	17	Recorded cash from cash clients for fees earned during the period July 1–17, $9,450.
	18	Paid cash for supplies, $600.
	20	Recorded services provided on account for the period July 13–20, $6,650.
	24	Recorded cash from cash clients for fees earned for the period July 17–24, $5,000.
	26	Received cash from clients on account, $12,000.
	27	Paid receptionist for two weeks’ salary, $1,700.
	29	Paid telephone bill for July, $300.
	31	Paid electricity bill for July, $675.
	31	Recorded cash from cash clients for fees earned for the period July 25–31, $5,400.
	31	Recorded services provided on account for the remainder of July, $3,000.
	31	Paid dividends, $12,500.


1.	Journalize each transaction in a two-column journal starting on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)

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