PR 4-5 Accounting cycle 8. Net income: $68,130 217 OBJ. 4, 5 For the past several years, Samantha Hogan has operated a part-time consulting business
PR 4-5 Accounting cycle 8. Net income: $68,130 217 OBJ. 4, 5 For the past several years, Samantha Hogan has operated a part-time consulting business from her home. As of July 1, 20Y9, Samantha decided to move to rented quarters and to operate the business, which was to be known as Arborvite Consulting, on a full-time basis. Arborvite Consulting entered into the following transactions during July:
July 1. The following assets were received from Samantha Hogan: cash, $25,700; accounts receivable, $30,200; supplies, $5,100; and office equipment, $12,100. There were no liabilities received.
1. Paid three months' rent on a lease rental contract, $8,100.
2. Paid the premiums on property and casualty insurance policies, $6,100.
3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $10,800.
5. Purchased additional office equipment on account from Office Necessities Co., $6,900.
6. Received cash from clients on account, $17,300.
10. Paid cash for a newspaper advertisement, $680.
12. Paid Office Necessities Co. for part of the debt incurred on July 5, $4,100.
12. Provided services on account for the period July 1-12, $19,200.
14. Paid receptionist for two weeks' salary, $2,000.
Record the following transactions on Page 2 of the journal:
17. Received cash from cash clients for fees earned during the period July 1-17, $14,100.
18. Paid cash for supplies, $1,400.
20. Provided services on account for the period July 13-20, $12,200.
24. Received cash from cash clients for fees earned for the period July 17-24, $11,500.
26. Received cash from clients on account, $16,300.
27. Paid receptionist for two weeks' salary, $2,000.
29. Paid telephone bill for July, $440.
31. Paid electricity bill for July, $910.
31. Received cash from cash clients for fees earned for the period July 25-31, $9,600.
31. Provided services on account for the remainder of July, $7,400.
31. Samantha withdrew $27,100 for personal use.
Instructions
1.Journalize each transaction in a two-column journal starting on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)
11 Cash
12 Accounts Receivable
14 Supplies
15 Prepaid Rent
16 Prepaid Insurance
18 Office Equipment
19 Accumulated Depreciation
21 Accounts Payable
22 Salaries Payable
23 Unearned Fees (Continued)
31 Samantha Hogan, Capital
32 Samantha Hogan, Drawing
41 Fees Earned
51 Salary Expense
52 Rent Expense
53 Supplies Expense
54 Depreciation Expense
55 Insurance Expense
59 Miscellaneous Expense
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Lets go step by step to journalize each transaction for Samantha Hogans business Arborvite Consulting using the chart of accounts provided Below is a detailed explanation and the journal entries requi...See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started