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​