Scenario: For the past several years, Angela Smith operated a part-time consulting business from her home. As of September 1, 2020, Angela decided to move to rented quarters and to operate the business on a full-time basis. She has registered the business as Interactive Consulting Ltd but has no prior knowledge of accounting and has approached a member of your group for advice. The company entered the following transactions during September: Sept 1. The following assets were received from Angela Smith in exchange for capital of Interactive Consulting Ltd: cash - $7,050, accounts receivable - $1,500, supplies - $1,250, and office equipment - $7,200. There were no liabilities received.Paid three (3) months rent on a lease rental contract, $3,600. Paid the premiums on the property and peril insurance policies, $1,500.Received cash from clients as an advance payment for services to be provided in the coming months, $3,500.Purchased additional office equipment on account from Payne Company, $1,800. Received cash from clients on account, $800.Paid cash for newspaper advertisement, $120.Paid Payne Company a portion of the debt incurred on September 5, $800.Recorded services provided on account for the period September 1 -12, $1,200.Paid part-time receptionist for two weeks’ salary, $400.Recorded cash from cash clients for fees earned during the first half of September, $2,100.Paid cash for supplies, $750.Recorded services provided on account for the period September 13-20, $1,100. Recorded cash from cash clients for fees earned for the period September 17-24, $1,850.Received cash from clients on account, $1,300.Paid part-time receptionist for two weeks salary, $400.Paid telephone bill for September, $130.Paid electricity bill for September, $200. Recorded cash from cash clients for fees earned for the period September 25-30, $1,050.Recorded services provided on account for the remainder of September, $500. Requirement: Post the journal entries to their respective ledger accounts.

The journal entries are posted in the ledger accounts as follows. Cash Account Debit Credit…

Answered: Post the journal entries to their…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 55P

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Scenario:

For the past several years, Angela Smith operated a part-time consulting business from her home. As of September 1, 2020, Angela decided to move to rented quarters and to operate the business on a full-time basis. She has registered the business as Interactive Consulting Ltd but has no prior knowledge of accounting and has approached a member of your group for advice. The company entered the following transactions during September:

Sept 1. The following assets were received from Angela Smith in exchange for capital of Interactive Consulting Ltd: cash - $7,050, accounts receivable - $1,500, supplies - $1,250, and office equipment - $7,200. There were no liabilities received.

Paid three (3) months rent on a lease rental contract, $3,600.
Paid the premiums on the property and peril insurance policies, $1,500.
Received cash from clients as an advance payment for services to be provided in the coming months, $3,500.
Purchased additional office equipment on account from Payne Company, $1,800.
Received cash from clients on account, $800.
Paid cash for newspaper advertisement, $120.
Paid Payne Company a portion of the debt incurred on September 5, $800.
Recorded services provided on account for the period September 1 -12, $1,200.
Paid part-time receptionist for two weeks’ salary, $400.
Recorded cash from cash clients for fees earned during the first half of September, $2,100.
Paid cash for supplies, $750.
Recorded services provided on account for the period September 13-20, $1,100.
Recorded cash from cash clients for fees earned for the period September 17-24, $1,850.
Received cash from clients on account, $1,300.
Paid part-time receptionist for two weeks salary, $400.
Paid telephone bill for September, $130.
Paid electricity bill for September, $200.
Recorded cash from cash clients for fees earned for the period September 25-30, $1,050.
Recorded services provided on account for the remainder of September, $500.

Requirement:

Post the journal entries to their respective ledger accounts.

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