April 1:
Debit: Prepaid Advertising ($675)
Credit: Cash ($675)
April 3:
Debit: Rent Expense ($400)
Credit: Cash ($400)
April 5:
Debit: Cash ($640)
Credit: Accounts Receivable ($640)
April 5:
Debit: Salaries Expense ($1,430 for April)
Debit: Salaries Expense ($770 for March)
Credit: Salaries Payable ($2,200)
April 12:
Debit: Cash ($1,600)
Credit: Service Revenue ($1,600)
April 15:
Debit: Equipment ($1,000)
Credit: Accounts Payable ($1,000)
April 20:
Adjusting Entries:
Supplies Adjustment:
Debit: Supplies Expense
Credit: Supplies
Accrued Salaries Adjustment:
Debit: Salaries Expense
Credit: Salaries Payable
Depreciation Adjustment:
Debit: Depreciation Expense
Credit: Accumulated Depreciation
Unearned Revenue Adjustment:
Debit: Unearned Service Revenue
Credit: Service Revenue
Advertising Adjustment:
Debit: Prepaid Advertising
Credit: Advertising Expense
Interest Revenue Adjustment:
Debit: Interest Receivable
Credit: Interest Revenue
Debit: Accounts Payable ($500)
Credit: Cash ($500)
April 22:
Debit: Supplies Expense ($200)
Credit: Accounts Payable ($200)
April 25:
Debit: Salaries Expense ($800)
Credit: Cash ($800)
April 27:
Debit: Accounts Receivable ($610)
Credit: Service Revenue ($610)
April 29:
Debit: Cash ($270)
Credit: Unearned Service Revenue ($270)
Posting to Ledger Accounts:
Now, each transaction will be posted to
the corresponding ledger accounts:
Cash
Prepaid Advertising
Rent Expense
Accounts Receivable
Salaries Payable
Salaries Expense
Service Revenue
Equipment
Accounts Payable
Supplies
Supplies Expense
Depreciation Expense
Unearned Service Revenue
Interest Receivable
Interest Revenue
Advertising Expense
