Exercise C-01
Bill Rosenberg recently opened his legal practice as a sole proprietorship. During the first month of operations, the following events and
transactions occurred:
April 2 Invested $15,200 cash along with equipment valued at $11,200 in the business. Hint: (Use Owner's Capital).
2 Hired an administrative assistant at a salary of $520 per week payable monthly.
3 Purchased $1,320 of supplies on account. (Debit an asset account.)
7 Paid office rent of $850 for the month.
11 Completed the preparation of a will and billed the client $1,530 for services rendered. (Use the Service Revenue account.)
12 Received cash of $4,100 in advance of performing services.
17 Received cash of $2,620 for services completed for Cullumber Company.
21 Paid insurance expense of $100.
30 Paid the administrative assistant $2,080 for the month.
30 A count of supplies indicated that $200 of supplies had been used during the month.
30 Purchased a new computer for $4,050 paid for with personal funds. (The computer will be used only for business purposes.)
Journalize the transactions in the general journal. (Credit account titles are automatically indented when amount is entered. Do
not indent manually. If no entry is required, select \"No Entry\" for the account titles and enter 0 for the amounts. Record
journal entries in the order presented in the problem.)
