Anna Rehearse started her practice as a design consultant, Rehearse Design, on April 1, 2022. During the first month of operations, the business completed the following transactions: Apr 1 Received $25,000 and gave capital to Rehearse. 5 Purchased supplies, $1,000, and furniture, $3,000 on account. 10 Performed design services for a client on account, $2,500. 15 Paid $5,000 cash to acquire computer equipment. 20 Paid for the furniture purchased on account. 22 Received cash on account, $1,250. 25 Prepared a design for a school, receiving cash $1,500 30 Paid secretary salary $1,200. 30 Paid office rent expense, $2,000, and utilties $500. 30 Rehearse withdrew cash of $4,000. Required: 1. Journalize the transactions noted above. 2. Open T-accounts for the accounts affected by the transactions noted above. Post the transactions to the T-accounts. Label the balance of each account Bal. 3. Prepared the trial balance as of April 30, 2022. 4. Determine if the company was profitable for the Month of April. Net Income? $ OR Net Loss? $
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P 2-6 YaÄźmur Bulut completed the following transactions during October 20X1: 1. 1 October, invested TL 50.000 to start an accounting practice, YaÄźmur Bulut, SMMM. 2. 2 October, rented office space and paid TL 1.200 for October. 3. 4 October, paid cash for a Dell computer, TL 2.000. The computer is expected to remain in service for five years. 4. 5 October, purchased furniture and fixtures for the office on account, TL 5.400. These items have an estimated useful life of 5 years. 5. 6 October, purchased supplies on account, TL 150. 6. 8 October, performed tax filing services for a client on account, TL 375. 7. 15 October, performed bookkeeping services for a client and received cash, TL 150. 8. 22 October, made an agreement with a client to perform bookkeeping for 6 months and received TL 1.200 in advance. 9. 23 October, recruited an accounting student with a monthly salary of TL 500. The salary will be paid on the 5th day of each month. 10. 27 October, paid the liability for the purchase of office supplies. 11. 29 October, the client who was billed on 8 October paid TL 275. 12. 31 October, withdrew cash to pay her son's school fee, TL 1.600. Required: a. Journalize the transactions. (Explanations for the entries are not required.) b. Post journal entries to the T-accounts. c. Prepare the trial balance at October 31. P3-2 Refer to problem 2-6 of Chapter 2. The following is the information related to YaÄźmur Bulut SMMM at the end of October 20X1. a. Consulting services performed but not yet billed to the clients totals TL 3.800. b. Earned one month portion of the advance received on 22 October. c. The count of supplies made on 31 October revealed TL 40 worth of supplies on hand. d. Monthly depreciation should be recorded for the computer and furniture and fixtures. e. Salary of the accounting student was accrued but not paid. Required 1. Prepare the adjusting entries at the end of 31 October 20X1, and post them to T-accounts. 2. Prepare the adjusted trial balance as of 31 October 20X1. 3. Prepare the income statement for the period ending 31 October 20X1. 4. Prepare the closing entries. 5. Prepare the statement of financial position as of the end of October 20X1.
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On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 1: Nozomi invested $33,000 cash and computer equipment worth $30,000 in the company. April 2: The company rented furnished office space by paying $2,600 cash for the first month's (April) rent. April 3: The company purchased $1,600 of office supplies for cash. April 10: The company paid $2,500 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. April 14: The company paid $1,600 cash for two weeks' salaries earned by employees. April 24: The company collected $9,500 cash for commissions earned. April 28: The company paid $1,600 cash for two weeks' salaries earned by employees. April 29: The company paid $250 cash for minor repairs to the company's computer. April 30: The company paid $750 cash for this month's telephone bill. April 30: Nozomi withdrew $2,500 cash from the company for personal use. Use the following information: - Prepaid insurance of $139 has expired this month. - At the end of the month, $700 of office supplies are still available. - This month's depreciation on the computer equipment is $500. - Employees earned $340 of unpaid and unrecorded salaries as of month-end. - The company earned $1,600 of commissions that are not yet billed at month-end. Required: 1. & 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 6b. The company records prepaid and unearned items in balance sheet accounts. 3. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. 4. Journalize the adjusting entries for the month and prepare the adjusted trial balance. 5a. Prepare the income statement for the month of April 30. 5b. Prepare the statement of owner's equity for the month of April 30. 5c. Prepare the balance sheet at April 30. 6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b. 6b. Post the journal entries to the ledger. 7. Prepare a post-closing trial balance.
Jeanne Byrnes opens a web consulting business called Fashion First and completes the following transactions in its first month of operations. Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded. Apr. 1: Byrnes invested $107,000 cash along with office equipment valued at $30,500 in the company. Apr. 2: The company prepaid $14,400 cash for 12 months' rent for office space. The company's policy is to record prepaid expenses in balance sheet accounts. Apr. 3: The company made credit purchases for $8,900 in office equipment and $4,500 in office supplies. Payment is due within 10 days. Apr. 6: The company completed services for a client and immediately received $6,700 cash. Apr. 9: The company completed a $10,500 project for a client, who must pay within 30 days. Apr. 13: The company paid $13,400 cash to settle the accounts payable created on April 3. Apr. 19: The company paid $4,560 cash for the premium on a 12-month insurance policy. The company's policy is to record prepaid expenses in balance sheet accounts. Apr. 22: The company received $6,300 cash as partial payment for the work completed on April 9. Apr. 25: The company completed work for another client for $4,800 on credit. Apr. 28: Byrnes withdrew $5,600 cash from the company for personal use. Apr. 29: The company purchased $1,500 of additional office supplies on credit. Apr. 30: The company paid $2,100 cash for this month's utility bill. Every journal entry must keep the accounting equation in balance. Prepare the journal entries for each of the transactions of the Fashion First Company, entering the debits before the credits. Each transaction will automatically be posted to the General Ledger and the Trial Balance as soon as you click "Record Entry".
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Principles of Accounting Volume 1: Financial Accounting
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