1. Describe each of the above with a Journal entry Include the date

2.Prepare T-accounts for the accounts above and post all transactions for April

3.Create the Trial Balance

4.What is the Net Income for the Month

AAA Tax Service opens their business on April 1 and have the following transactions
in the month.:
4/1 The company founder invests $50,000 and becomes the company's only shareholder.
4/2 The company buys 4 computers for total cost $8,100, paying 2,100 cash and 6,000 on account.
4/6 The Company pays cash for a 12 month insurance policy 6,000. Effective 4/1 - 3/31/next year
4/7 The company buys supplies that will be used for several months. This costs $6,000 on account
4/8 The company's first customer pays cash of $4000 for tax service
4/15 The company pays payroll expense of $2,000
4/17 More tax service is performed for customers on account for $7,500
4/25 The company collects 3,000 from customers for service just completed in g above on 4/17
4/30 The company pays the amount owed for the 4 computers bought on 4/2 above ($6,000)
4/30 The company pays $2,000 for the first months rent expense
4/30 The company receives $7,000 cash for tax work for a customer. Work will be completed next Mo.
4/30 The company pays a dividend of $1,000 for the month
Adjustments
4/30 Create the depreciation entry for the month for the computers. $225 per month
4/30 Make the adjustment entry for one month of insurance for the insurance purchased on 4/6
4/30 They rush and complete half the job for the customer in k above. Create the entry to recognize
half of the revenue.
4/30 A count of the supplies shows a total of $4,000 remaining in supplies.