Emily Valley

[logistic_guy]

\(\displaystyle \text{Emily Valley}\) is a licensed dentist. During the first month of the operation of her business, the following events and transactions occurred.

April
\(\displaystyle \bold{1}\) Invested \(\displaystyle \$ 20,000\) cash in her business.
\(\displaystyle \bold{1}\) Hired a secretary-receptionist at a salary of \(\displaystyle \$ 700\) per week payable monthly.
\(\displaystyle \bold{2}\) Paid office rent for the month \(\displaystyle \$ 1,100\).
\(\displaystyle \bold{3}\) Purchased dental supplies on account from \(\displaystyle \text{Dazzle Company}\) \(\displaystyle \$ 4,000\).
\(\displaystyle \bold{10}\) Performed dental services and billed insurance companies \(\displaystyle \$ 5,100\).
\(\displaystyle \bold{11}\) Received \(\displaystyle \$ 1,000\) cash advance from \(\displaystyle \text{Leah Mataruka}\) for an implant.
\(\displaystyle \bold{20}\) Received \(\displaystyle \$ 2,100\) cash for services performed from \(\displaystyle \text{Michael Santos}\).
\(\displaystyle \bold{30}\) Paid secretary-receptionist for the month \(\displaystyle \$ 2,800\).
\(\displaystyle \bold{30}\) Paid \(\displaystyle \$ 2,400\) to \(\displaystyle \text{Dazzle}\) for accounts payable due.

Instructions
\(\displaystyle \bold{(a)}\) Journalize the transactions.
\(\displaystyle \bold{(b)}\) Post to the ledger accounts.
\(\displaystyle \bold{(c)}\) Prepare a trial balance on April \(\displaystyle 30, 2017\).

 

[logistic_guy]

\(\displaystyle \bold{1}\) Invested \(\displaystyle \$ 20,000\) cash in her business.

1​	Account​	Debit​	Credit​
	Cash​	20,000​	​
	Owner's Capital​	​	20,000​

 

[logistic_guy]

\(\displaystyle \bold{1}\) Hired a secretary-receptionist at a salary of \(\displaystyle \$ 700\) per week payable monthly.

No journal entry is required!

 

[logistic_guy]

\(\displaystyle \bold{2}\) Paid office rent for the month \(\displaystyle \$ 1,100\).

2​	Account​	Debit​	Credit​
	Rent Expense​	1,100​	​
	Cash​	​	1,100​

 

[logistic_guy]

\(\displaystyle \bold{3}\) Purchased dental supplies on account from \(\displaystyle \text{Dazzle Company}\) \(\displaystyle \$ 4,000\).

3​	Account​	Debit​	Credit​
	Dental Supplies​	4,000​	​
	Accounts Payable​	​	4,000​

 

[logistic_guy]

\(\displaystyle \bold{10}\) Performed dental services and billed insurance companies \(\displaystyle \$ 5,100\).

10​	Account​	Debit​	Credit​
	Accounts Receivable​	5,100​	​
	Service Revenue​	​	5,100​

 

[logistic_guy]

\(\displaystyle \bold{11}\) Received \(\displaystyle \$ 1,000\) cash advance from \(\displaystyle \text{Leah Mataruka}\) for an implant.

11​	Account​	Debit​	Credit​
	Cash​	1,000​	​
	Unearned Service Revenue​	​	1,000​

 

[logistic_guy]

\(\displaystyle \bold{20}\) Received \(\displaystyle \$ 2,100\) cash for services performed from \(\displaystyle \text{Michael Santos}\).

20​	Account​	Debit​	Credit​
	Cash​	2,100​	​
	Service Revenue​	​	2,100​

 

[logistic_guy]

\(\displaystyle \bold{30}\) Paid secretary-receptionist for the month \(\displaystyle \$ 2,800\).

30​	Account​	Debit​	Credit​
	Salaries and Wages Expense​	2,800​	​
	Cash​	​	2,800​

 

[logistic_guy]

\(\displaystyle \bold{30}\) Paid \(\displaystyle \$ 2,400\) to \(\displaystyle \text{Dazzle}\) for accounts payable due.

30​	Account​	Debit​	Credit​
	Accounts Payable​	2,400​	​
	Cash​	​	2,400​

 

[logistic_guy]

\(\displaystyle \bold{(b)}\)

Cash Ledger​

Date​	Explanation​	Debit​	Credit​	Balance​
April 1​	Initial Investment​	20,000​	​	20,000​
2​	Rent Payment​	​	1,100​	18,900​
11​	Cash Advance Received​	1,000​	​	19,900​
20​	Cash from Services​	2,100​	​	22,000​
30​	Salary Payment​	​	2,800​	19,200​
30​	Payment to Supplier​	​	2,400​	16,800​

 

[logistic_guy]

Accounts Receivable Ledger​

Date​	Explanation​	Debit​	Credit​	Balance​
April 10​	Services Performed​	5,100​	​	5,100​

 

[logistic_guy]

Supplies Ledger​

Date​	Explanation​	Debit​	Credit​	Balance​
April 3​	Dental Supplies Purchased​	4,000​	​	4,000​

 

[logistic_guy]

Accounts Payable Ledger​

Date​	Explanation​	Debit​	Credit​	Balance​
April 3​	Purchased on Account​	​	4,000​	4,000​
30​	Paid an Amount that was on Account​	2,400​	​	1,600​

 

[logistic_guy]

Owner's Ledger​

Date​	Explanation​	Debit​	Credit​	Balance​
April 1​	Initial Investment​	​	20,000​	20,000​