Exercise E3.1: Transaction Analysis For Beverly Service Comp ✓ Solved

Exercise E3 1 Transaction AnalysisService Company Beverly

Exercise E3.1 (Transaction Analysis—Service Company) Beverly

Journalize the transactions in the general journal. (Omit explanations.)

Paper For Above Instructions

In this task, we will journalize the transactions that occurred in the first month of operations for Beverly Crusher's CPA business, ensuring each transaction is accurately recorded in the general journal.

General Journal for Beverly Crusher's CPA Business

April 2

Debit Cash $32,000

Debit Equipment $14,000

Credit Owner's Capital $46,000

April 2

Debit Administrative Expense $290

Credit Salaries Payable $290

April 3

Debit Supplies $700

Credit Accounts Payable $700

April 7

Debit Rent Expense $600

Credit Cash $600

April 11

Debit Accounts Receivable $1,100

Credit Service Revenue $1,100

April 12

Debit Cash $3,200

Credit Unearned Service Revenue $3,200

April 17

Debit Cash $2,300

Credit Service Revenue $2,300

April 21

Debit Insurance Expense $110

Credit Cash $110

April 30

Debit Salaries Payable $1,160

Credit Cash $1,160

April 30

Debit Supplies Expense $580

Credit Supplies $580

April 30

Debit Equipment $6,100

Credit Owner's Capital $6,100

Conclusion

This journal entry process effectively chronicles Beverly Crusher’s business transactions during its first month of operations. These entries will form the basis for preparing her accounting records, including the trial balance and financial statements to follow in subsequent tasks.

References

  • Accounting Principles: A Business Perspective, Financial Accounting (2017).
  • Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2020). Financial Accounting (10th ed.). Wiley.
  • Spiceland, J. D., Nelson, M. W., & Thomas, J. J. (2019). Financial Accounting (4th ed.). McGraw-Hill Education.
  • Harrison, W. T., & Horngren, C. T. (2018). Financial Accounting (11th ed.). Pearson.
  • Weil, R. L., & Schipper, K. (2018). Financial Accounting (3rd ed.). Cengage Learning.
  • Libby, T., Libby, R., & Short, D. G. (2019). Financial Accounting (9th ed.). McGraw-Hill Education.
  • Porter, G. A., & Norton, C. L. (2019). Financial Accounting (10th ed.). Cengage Learning.
  • Deloitte. (2020). Accounting Standards and Procedures.
  • American Institute of CPAs. (2019). Professional Standards.
  • Financial Accounting Standards Board (FASB). (2020). Accounting Standards Updates.

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