Vera Ernst is a licensed dentist. During the first month of the operation of her business, the following events and transactions occurred.April 1 Invested $23,000 cash in her business.1 Hired a secretary-receptionist at a salary of $800 per week payable monthly.2 Paid office rent for the month $1,1003 Purchased dental supplies on account from Dazzle Company $4,900.10 Performed dental services and billed insurance companies $4,600.11 Received $1,300 cash advance from Leah Mataruka for an implant.20 Received $2,500 cash for services performed from Michael Santos.30 Paid secretary-receptionist for the month $3,200.30 Paid $3,140 to Dazzle for accounts payable due.Journalize the transactions.

Answer :

Answer:

The journal entry for each transaction is given below.

April 1 Invested $23,000 cash in her business.

Debit Cash Asset            $ 23,000

Credit Capital Account    $ 23,000

1 Hired a secretary-receptionist at a salary of $800 per week payable monthly.

(No entry required)

2 Paid office rent for the month $1,100

Debit Rent Expense    $ 1,100

Credit Cash Asset        $ 1,100

3 Purchased dental supplies on account from Dazzle Company $4,900.

Debit Supplies Inventory    $ 4,900

Credit Account Payable      $ 4,900

10 Performed dental services and billed insurance companies $4,600

Debit Receivables account     $ 4,600

Credit Service Revenue           $ 4,600

.11 Received $1,300 cash advance from Leah Mataruka for an implant.

Debit Cash Asset                              $ 1,300

Credit Advance Income Liability      $ 1,300

20 Received $2,500 cash for services performed from Michael Santos.

Debit Cash Asset Account    $ 2,500

Credit Receivable Account   $ 2,500

30 Paid secretary-receptionist for the month $3,200.

Debit Salary Expense    $ 3,200

Credit Cash Asset          $ 3,200

30 Paid $3,140 to Dazzle for accounts payable due

Debit Account Payable   $ 3,140

Credit Cash Asset           $ 3,140

Vera Ernst journal entries for the transactions are:

April 1

Debit Cash             $ 23,000

Credit Owner's Equity    $23,000

(To record owner's Investment)

April 1

No journal entry

April 2

Debit Rent Expense    $ 1,100

Credit Cash         $ 1,100

(To record office rent)

April 3

Debit Supplies     $ 4,900

Credit Account Payable-Dazzle company  $ 4,900

(To record  supplies on account)

April 10

Debit  Account Receivables -Insurance company   $ 4,600

Credit Service Revenue           $ 4,600

(To record services performed)

April 11

Debit Cash                               $ 1,300

Credit Unearned revenue      $ 1,300

(To record Cash received for future services)

April 20

Debit Cash $ 2,500

Credit Service revenue   $ 2,500

(To record Cash received for services performed)

April 30

Debit Salary Expense    $ 3,200

Credit Cash           $ 3,200

(To record salary expense)

April 30

Debit Account Payable   $ 3,140

Credit Cash      $ 3,140

(To record amount paid to Dazzle on account)

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