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For the past several years, Emily Page has operated a part-timeconsulting business
from her home. As of June 1, 2010, Emily decided to move to rentedquarters and to
operate the business, which was to be known as Bottom LineConsulting, on a full-time
basis. Bottom Line Consulting entered into the followingtransactions during June:
June 1. The following assets were received from Emily Page: cash,$20,000; accounts
receivable, $4,500; supplies, $2,000; and office equipment,$11,500. There were
no liabilities received.

1. Paid three months

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Jamar Ferry
Jamar FerryLv2
28 Sep 2019
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Related questions

I need to journalize these transactions. Trying to keep thesebalanced is difficult, and I've been confused as to what accountsto debit/credit. If you could help me fill this out, that would begreatly appreciated.

For the past several years, Aaron Jones has operated aconsulting business from his home on a part-time basis. As ofDecember 1, 20X1, Aaron decided to move to rented quarters andincorporate his business as Progress Consulting Inc. ProgressConsulting entered into the following transactions duringDecember:

1st AaronJones invested the following assets in the business: cash, $50,000;supplies,

$10,000; and office equipment, $30,000. Mr. Jones received stockin an

amount equal to his investment in the corporation.

2nd Paid $9,000for rent for December 20X1 through February 28, 20X2.

3rd Paid$12,000 for a one year premium on property and casualty insurance.The

policy covers the period December 1, 20X1 to November 30,20X2.

4th Received $16,000 cash from a client as an advance payment forservices to be

performed in the future.

5th Purchased additional office equipment on account from Payne Companyfor $10,000.

10th Paid $7,500 for anewspaper advertisement that ran in today’s paper.

11th Paid Payne Company$3,000 for part of the debt incurred on December 5.

12th Billed clients forservices performed on account, $5,800.

17th Received cash paymentfrom client for services performed on this date, $14,000.

18th Paid $6,000 forsupplies.

20th Billed clients forservices performed on account, $15,000.

24th Received cash paymentfrom client for services performed on this date, $2,000.

25th Received cash fromclients as payment on account, $3,000.

30th Paid $750 forutilities for December.

31st Paid cash dividend of$5,000.

These are the accounts we have:

PROGRESS CONSULTING: Chart of Accounts

11 Cash

12 Accounts Receivable

14 Supplies

15 Prepaid Rent

17 Prepaid Insurance

18 Office Equipment

19 Accumulated Depreciation

21 Accounts Payable

22 Wages Payable

23 Unearned Revenues

31 Common Stock

34 Retained Earnings

35 Dividends

37 Income Summary

41 Service Revenues

51 Insurance Expense

52 Advertising Expense

53 Rent Expense

55 Supplies Expense

57 Depreciation Expense

59 Utilities Expense

60 Wage Expense

Date

Description

Debit

Credit

Dec

1

Cash

50,000

1

Supplies

10,000

1

Office Equipment

30,000

1

Common Stock

90,000

2

For the past several years, Aaron Jones has operated aconsulting business from his home on a part-time basis. As ofDecember 1, 20X1, Aaron decided to move to rented quarters andincorporate his business as Progress Consulting Inc. ProgressConsulting entered into the following transactions during December:1st Aaron Jones invested the following assets in the business:cash, $50,000; supplies, $10,000; and office equipment, $30,000.Mr. Jones received stock in an amount equal to his investment inthe corporation. 2nd Paid $9,000 for rent for December 20X1 throughFebruary 28, 20X2. 3rd Paid $12,000 for a one year premium onproperty and casualty insurance. The policy covers the periodDecember 1, 20X1 to November 30, 20X2. 4th Received $16,000 cashfrom a client as an advance payment for services to be performed inthe future. 5th Purchased additional office equipment on accountfrom Payne Company for $10,000. 10th Paid $7,500 for a newspaperadvertisement that ran in today’s paper. 11th Paid Payne Company$3,000 for part of the debt incurred on December 5. 12th Billedclients for services performed on account, $5,800. 17th Receivedcash payment from client for services performed on this date,$14,000. 18th Paid $6,000 for supplies. 20th Billed clients forservices performed on account, $15,000. 24th Received cash paymentfrom client for services performed on this date, $2,000. 25thReceived cash from clients as payment on account, $3,000. 30th Paid$750 for utilities for December. 31st Paid cash dividend of$5,000

Journalize each of the above transactions.

Post theses Journal entries tothe ledger.Prepare anunadjusted trial balance as of December 31,20X1.Journalize and post the adjustingentries using the following information:

a. Insurance expired during December is $1,000 Supplies on hand on December 31 are valued at$4,500. Depreciation ofoffice equipment for December is $1,000. Rent expired during December is $3,000.Determined that the company hadperformed $4,000 of the services for which it was paid in advanceon December 4th. f. Employeewages were left unpaid in the amount of $1,700 for the month ofDecember. The employees will be paid the first week inJanuary. Services wereperformed for a client on December 31 in the amount of $2,100. Theclient did not pay, nor has the client been billed. (hint: thistransaction has not yet been journalized.) Prepare an adjusted trial balance.Using the adjusted trial balance,prepare an income statement, a statement of retained

earnings, and a balance sheet. Journalize and post the closing entries.Prepare a post-closing trialbalance.

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