John Deer began a restaraunt consulting company. Below are events and transactions that occurred during the first month of operation.

May 1 John Deer invested $38,000 cash to start a consulting business.
May 2 Hired a receptionist at a salary of $2,200 per month.
May 3 Purchased $600 of supplies, on account, from Office Supply Company.
May 7 Paid office rent of $1,300 for the month.
May 11 Billed clients $1,900 providing consulting services.
May 12 Received $4,000 advance on a consulting engagement.
May 17 Received cash of $1,600 for services completed for Mutter Company.
May 31 Paid receptionist salary for the month.
May 31 Paid 40% of the balance due to Office Supply Company.

Post journal entries to the ledger accounts. Prepare the month end trial balance.  
 
 

Transcribed Image Text:

Task #1 (Cont'd) (b) Cash Date Accounts Receivable Date Supplies Date Accounts Payable Date Unearned Revenue Date Capital Date Service Revenue Date Salaries Expense Date Rent Expense Date Explanation Explanation Explanation Explanation Explanation Explanation Explanation Explanation Explanation Ref. J1 JI J1 J1 J1 J1 Ref. J1 Ref. J1 Ref. J1 J1 Ref. J1 Ref. J1 Ref. J1 J1 Ref. J1 Ref. J1 Debit Debit Debit Debit Debit Debit Debit Debit Debit Credit Credit Credit Credit Credit Credit Credit Credit Credit No. 101 Balance No. 112 Balance No. 126 Balance No. 201 Balance No. 205 Balance No. 311 Balance No. 400 Balance No. 726 Balance No. 729 Balance Task #1 (Cont'd) (b) Cash Date Accounts Receivable Date Supplies Date Accounts Payable Date Unearned Revenue Date Capital Date Service Revenue Date Salaries Expense Date Rent Expense Date Explanation Explanation Explanation Explanation Explanation Explanation Explanation Explanation Explanation Ref. J1 JI J1 J1 J1 J1 Ref. J1 Ref. J1 Ref. J1 J1 Ref. J1 Ref. J1 Ref. J1 J1 Ref. J1 Ref. J1 Debit Debit Debit Debit Debit Debit Debit Debit Debit Credit Credit Credit Credit Credit Credit Credit Credit Credit No. 101 Balance No. 112 Balance No. 126 Balance No. 201 Balance No. 205 Balance No. 311 Balance No. 400 Balance No. 726 Balance No. 729 Balance

Answer rating: 100% (QA)

Here are the journal entries for the transactions May 1 Cash38000 Capital38000 Invested cash to star... View the full answer