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For the past several years, Dustin Larkin has operated a part-time consulting business from his home. As of June 1, 2013, Dustin decided to move

For the past several years, Dustin Larkin has operated a part-time consulting business from his home. As of June 1, 2013, Dustin decided to move to rented quarters and to operate the business, which was to be known as Quixote Consulting, on a full-time basis. Quixote Consulting entered into the following transactions during June:

Date

Transaction

June 1

The following assets were received from Dustin Larkin:

Cash, $10,000; Accounts receivable $1,500; supplies, $1,250; and office equipment, $7,500. There were no liabilities received.

June 1

Paid three months' rent on a lease rental contract, $4,500.

June 2

Paid the premiums on property and casualty insurance policies, $1,800.

June 4

Received cash from clients as an advance payment for services to be provided (Record it as unearned fees), $3,000.

June 5

Purchased additional office equipment on account from Crawford Company, $1,800. June 6.

June 6

Received cash from clients on account, $800.

June 10

Paid cash for a newspaper advertisement to run during June, $120.

June 12.

Paid Crawford Company for part of the debt incurred on June 5, $800.

June 12.

Recorded services provided on account for the period June 1 to June 12, $2,250.

June 14

Paid part-time receptionist for 2 weeks' salary, $400. (Note: Ignore any payroll tax or withholdings).

June 17

Recorded cash from cash clients for fees earned during the period June 1-16, $3,175.

June 18

Paid cash for supplies, $750.

June 20

Recorded services provided on account for the period June 13-20, $1,100.

June 24

Recorded cash from cash clients for fees earned for the period June 17-24, $1,850.

June 26

Received cash from clients on account, $1,600.

June 27

Paid part-time receptionist for two weeks' salary, $400. (Note: Ignore any payroll tax or withholdings).

June 29

Paid telephone bill for June, $130.

June 30

Paid electricity bill for June, $200.

June 30

Recorded cash from cash clients for fees earned for the period June 25-30, $2,050

June 30

Recorded services provided on account for the remainder of June, $1,000.

June 30

Dustin withdrew $4,500 for personal use.

  1. Journalize each transaction in the two-column journal tab, referring to the following chart of accounts in selecting the accounts to be debited andcredited.

11-Cash

31-Dustin Larkin, Capital

12-Accounts Receivable

32-Dustin Larkin, Drawing

14-Supplies

41-Fees Earned

15-Prepaid Rent

51-Salary Expense

16-Prepaid Insurance

52-Rent Expense

18-Office Equipment

53-Supplies Expense

19-Accumulated Depreciation

54-Depreciation Expense

21-Accounts Payable

55-Insurance Expense

22-Salaries Payable

59-Miscellaneous Expense

23-Unearned Fees

PREPARE JOURNAL ENTRIES , GENERAL LEDGER AND UNADJUSTED TRIAL BALANCE FOR THE FOLLOWING PROBLEM

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