Question 1. Prepare the journal entries and ledger accounts for Interactive Consulting Ltd.

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.

2. Paid three (3) months rent on a lease rental contract, $3,600.

3. Paid the premiums on the property and peril insurance policies, $1,500.

4. Received cash from clients as an advance payment for services to be provided in the coming months, $3,500.

5. Purchased additional office equipment on account from Payne Company, $1,800.

6. Received cash from clients on account, $800.

10. Paid cash for newspaper advertisement, $120.

12. Paid Payne Company a portion of the debt incurred on September 5, $800.

12. Recorded services provided on account for the period September 1 -12, $1,200.

13. Paid part-time receptionist for two weeks salary, $400.

17. Recorded cash from cash clients for fees earned during the first half of September, $2,100.

18. Paid cash for supplies, $750.

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

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

25. Received cash from clients on account, $1,300.

27. Paid part-time receptionist for two weeks salary, $400.

29. Paid telephone bill for September, $130.

30. Paid electricity bill for September, $200.

30. Recorded cash from cash clients for fees earned for the period September 25-30, $1,050.

30. Recorded services provided on account for the remainder of September, $500.

Requirement:

1. Refer to the following chart of accounts in selecting the accounts to be debited and credited for each transaction:

Account #	Account Name
11	Cash
12	Accounts Receivables
14	Supplies
15	Prepaid Rent
16	Prepaid Insurance
18	Office Equipment
21	Accounts Payable
22	Salaries Payable
23	Unearned Fees
31	Capital Stock
41	Fees Earned
51	Salary Expense
52	Rent Expense
53	Supplies Expense
54	Insurance Expense
55	Utilities Expense
56	Advertising Expense