Fred Silverman began a business called Silverman Accounting Service on March 1, 2022. You have just been hired as the bookkeeper for the business. The following transactions occurred during the first month of operations:
3/1 Silverman Accounting Service began operations when Fred invested $14,000 cash, a computer worth $4,000, and office furniture worth $12,000. This can all be recorded in one journal entry, all of this is considered an owner investment (hint – you will have 3 debits and one credit).
3/1 The business purchased insurance and paid $3,000 cash for a six-month policy. The policy coverage period begins on March 1 of this year.
3/2 They moved into the new office space and paid $4,000 for the monthly rent.
3/4 The owner went to the office supply store and purchased $800 of office supplies for cash.
3/12 The business performed accounting services for a client and received $3,000 in cash. (Note there are two revenue accounts, keep this in mind every time you record either accounting service revenue or tax service revenue).
3/15 Fred completed a complicated tax return for a client and sent them an invoice for $6,000. The client agreed to pay before the end of the month.
3/18 You calculated the payroll costs and paid the employees’ salaries of $2,000.
3/19 The business purchased supplies of $1,500 on account (for credit, we will pay for these supplies later).
3/20 Finished an accounting services job and received $5,000 cash.
3/22 Collected $4,000 in advance for tax services to be completed next month.
3/25 Collected $6,000 from the client billed on 3/15.
3/27 Received the utility bill of $2,500. The bill will be paid next week.
3/28 Performed accounting services on account (for credit, we will collect this money next month), $3,500.
3/30 Paid $1,000 of the amount we owed from the 3/19 purchase.
3/31 Fred withdrew cash of $7,500.
Requirements:
1. Record each transaction in the general journal using the following chart of accounts. Explanations are not necessary.