PR 4-5 Accounting cycle 8. Net income: $68,130 217 OBJ. 4, 5 For the past several years, Samantha Hogan has operated a part-time consulting business

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PR 4-5 Accounting cycle 8. Net income: $68,130 217 OBJ. 4, 5 For the past several years, Samantha Hogan has operated a part-time consulting business from her home. As of July 1, 20Y9, Samantha decided to move to rented quarters and to operate the business, which was to be known as Arborvite Consulting, on a full-time basis. Arborvite Consulting entered into the following transactions during July:

July 1. The following assets were received from Samantha Hogan: cash, $25,700; accounts receivable, $30,200; supplies, $5,100; and office equipment, $12,100. There were no liabilities received.

1. Paid three months' rent on a lease rental contract, $8,100.

2. Paid the premiums on property and casualty insurance policies, $6,100.

3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $10,800.

5. Purchased additional office equipment on account from Office Necessities Co., $6,900.

6. Received cash from clients on account, $17,300.

10. Paid cash for a newspaper advertisement, $680.

12. Paid Office Necessities Co. for part of the debt incurred on July 5, $4,100.

12. Provided services on account for the period July 1-12, $19,200.

14. Paid receptionist for two weeks' salary, $2,000.

Record the following transactions on Page 2 of the journal:

17. Received cash from cash clients for fees earned during the period July 1-17, $14,100.

18. Paid cash for supplies, $1,400.

20. Provided services on account for the period July 13-20, $12,200.

24. Received cash from cash clients for fees earned for the period July 17-24, $11,500.

26. Received cash from clients on account, $16,300.

27. Paid receptionist for two weeks' salary, $2,000.

29. Paid telephone bill for July, $440.

31. Paid electricity bill for July, $910.

31. Received cash from cash clients for fees earned for the period July 25-31, $9,600.

31. Provided services on account for the remainder of July, $7,400.

31. Samantha withdrew $27,100 for personal use.

Instructions

1.Journalize each transaction in a two-column journal starting on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)

11 Cash

12 Accounts Receivable

14 Supplies

15 Prepaid Rent

16 Prepaid Insurance

18 Office Equipment

19 Accumulated Depreciation

21 Accounts Payable

22 Salaries Payable

23 Unearned Fees (Continued)

31 Samantha Hogan, Capital

32 Samantha Hogan, Drawing

41 Fees Earned

51 Salary Expense

52 Rent Expense

53 Supplies Expense

54 Depreciation Expense

55 Insurance Expense

59 Miscellaneous Expense