Exercise 3-1

Marigold Crusher is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following events and transactions occurred.

April 2		Invested $35,330 cash and equipment valued at $16,090 in the business.
2		Hired an administrative assistant at a salary of $325 per week payable monthly.
3		Purchased supplies on account $641. (Debit an asset account.)
7		Paid office rent of $628 for the month.
11		Completed a tax assignment and billed client $1,276 for services rendered. (Use Service Revenue account.)
12		Received $2,619 advance on a management consulting engagement.
17		Received cash of $1,908 for services completed for Ferengi Co.
21		Paid insurance expense $99 for the next month.
30		Paid administrative assistant $1,300 for the month.
30		A count of supplies indicated that $104 of supplies had been used.
30		Purchased a new computer for $5,075 with personal funds. (The computer will be used exclusively for business purposes.)

Journalize the transactions in the general journal. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Account Titles and Explanation Debit Credit Date Apr. 2 Cash Equipment Owner's Capital Apr. 2 No Entry No Entry Apr. 3 Supplies Accounts Payable Rent Expense Apr. 7 Cash Apr. 11 Accounts Receivable Service Revenue Apr. 12 Cash Unearned Service Revenue Apr. 12 Cash Unearned Service Revenue Apr. 17 Cash Service Revenue Prepaid Insurance Apr. 21 Cash Salaries and Wages Expense Apr. 30 Cash Supplies Expenses Apr. 30 Supplies Apr. 30 Equipment Owner's Capital Open Show Work Click if you would like to Show Work for this