Maria Juarez
General journal
For the quarter ended April 30, 2010
P2-2B Maria Juarez is a licensed dentist. During the first month of the operation of her business,
the following events and transactions occurred.
April 1 Invested $40,000 cash.
1 Hired a secretary-receptionist at a salary of $600 per week payable monthly.
2 Paid office rent for the month $1,000.
3 Purchased dental supplies on account from Smile Company $4,000.
10 Provided dental services and billed insurance companies $5,100.
11 Received $1,000 cash advance from Trudy Borke for an implant.
20 Received $2,100 cash for services completed and delivered to John Stanley.
30 Paid secretary-receptionist for the month $2,400.
30 Paid $1,600 to Smile Company for accounts payable due.
Maria uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No.
126 Supplies, No. 201 Accounts Payable, No. 205 Unearned Revenue, No. 301 Maria Juarez,
Capital. No. 400 Service Revenue, No. 726 Salaries Expense, and No. 729 Rent Expense.
Requirement (a)
Date
2010
April 1
April 1
April 2
April 3
April
10
April
11
April
20
April
30
April
30
Account Title and Explanation
Cash
Maria Juarez capital
(Invested cash to start business)
No entry- Not a transaction
Rent expenses
Cash
(To record rent paid)
Supplies
Accounts payable
(Purchased supplies from smile company)
Accounts Receivable
Service Revenue
(Billed clients for services provided)
Cash
Unearned Service Revenue
(Received advance for the services to be provided)
Cash
Service Revenue
(To record cash for service provided)
Salary Expense
Cash
(To be record salary paid)
Accounts payable
Cash
(To record payment made to Smile Co.)
Ref
Debit
101
301
$ 40,000
729
101
$ 1,000
126
201
$ 4,000
112
400
$ 5,100
101
205
101
400
$ 1,000
$ 2,100
726
101
$ 2,400
201
101
$ 1,600
Credit
$ 40,000
$ 1,000
$ 4,000
$ 5,100
$ 1,000
$ 2,100
$ 2,400
$ 1,600
1.
2.
3.
4.
5.
Identify whether an economic event or not?
If an economic event or transaction, identify the accounts related to that transaction.
Set/Apply the golden rule.
Cash: Asset: Debit
Capital: credit
Requirement (b)
GENERAL LEDGER
Cash
No:101
Date
2010
April 1
April 2
April 11
April 20
April 30
April 30
Explanation
Ref
Debit
J1
$ 40,000
J1
J1
J1
J1
J1
-
$1,000
$2,100
Credit
-
$ 40,000
$1,000
$2,400
$1,600
Account Receivable
Date
2010
April 10
2010
April 3
April 30
Explanation
Ref
Debit
J1
$5,100
Credit
-
2010
April 3
Balance
$5,100
No:206
Explanation
Ref
J1
J1
Debit
$1,600
Supplies
Date
$39,000
$40,000
$42,100
$39,700
$38,100
No:112
Accounts Payable
Date
Balance
Credit
Balance
$4,000
$4,000
-
$2,400
No:126
Explanation
Ref
Debit
J1
$4,000
Credit
Balance
$4,000
Unearned Revenue
Date
2010
April 11
No:205
Explanation
Ref
J1
Debit
-
Credit
$1,000
Salaries Expenses
Date
2010
April 30
2010
April 10
April 20
Explanation
Ref
Debit
J1
$2,400
Credit
-
2010
April 2
No:400
Explanation
Ref
Debit
J1
-
J1
-
Credit
$5,100
$2,100
2010
April 1
Balance
$5,100
$7,200
No:729
Explanation
Ref
Debit
J1
$1,000
Credit
-
Balance
$1,000
Maria Juarez, Capital
Date
Balance
$2,400
Rent Expenses
Date
$1,000
No:726
Service Revenue
Date
Balance
No:301
Explanation
Ref
J1
Debit
-
Credit
Balance
$ 40,000
$ 40,000
Requirement (c)
Maria Juarez
Trial Balance
April 30, 2010
Name of the Accounts
Cash
Accounts Receivable
Supplies
Accounts Payable
Unearned Revenue
Maria Juarez Capital
Service Revenue
Salaries Expenses
Rent Expenses
Total
Arithmetically Accurate
Debit
$38,100
$5,100
$4,000
$2,400
$1,000
$50,600
Credit
$2,400
$1,000
$40,000
$7,200
$50,600