On April 1, 2018 Hippocrates Consulting began operations withthe following beginning balances entered on April 1st asseen in the T-accounts below. First show each of the transactionsdescribed below as a journal entry including the date and then posteach of the entries to the T-accounts below. After you havecompleted all of the entries as well as the adjusting entriesprepare an Income Statement, Statement of Retained Earnings, andBalance Sheet for the month of April, 2018. Make sure that yourstatements presented in good form (points will be deducted if theyare not in good form).
April 1: Paid three months’ rent on a lease rental contract,$4,800
2:Paid a six-month insurance premium for $1,800
4:Received cash from clients as an advance payment for services tobe
provided and recorded as unearned fees, $5,000
5:Purchased additional office equipment on account from OfficeStation Co.,
$2,000.
6:Received cash from clients on account, $1,800.
10: Paidcash for a newspaper advertisement, $120
12: PaidOffice Station Co. for part of the debt incurred on April 5,$1200.
12:Recorded services provided on account for the period April 1-12,$4,200.
14. Paidpart-time receptionist for two weeks’ salary, $750.
17:Recorded cash from cash clients for fees earned during the periodApril
1-16, $6,250.
18:Paid cash for supplies, $800.
20:Recorded services provided on account for the period April 13-20,$2,100.
24:Recorded cash from cash clients for fees earned the periodApril
17-24, $3,850.
26:Received cash from clients on account, $5,600.
27:Paid part-time receptionist for two weeks’ salary, $750.
29:Paid telephone bill for April, $130.
30:Paid electricity bill for April, $200.
30:Recorded cash from cash clients for fees earned for the periodApril25-30,
$3,050.
30:Recorded services provided on account for the remainder of April,$1,500.
30.A dividend of $6,000 was declared and paid.
The following are adjusting entries to be recorded on April30th:
- Insurance expired during April is $300.
- Supplies on hand on April 30 are $1,350.
- Depreciation of office equipment for April is $700.
- Accrued receptionist salary on April 30 is $120.
- Rent expired during April is $1,600.
- Unearned fees on April 30 are $2,500.
Accounts
Cash Receivable Supplies Prepaid Rent
--------------------- ------------------- -------------- ---------------
$13,100 $3,000 $1,400
Office Accumulated
Prepaid Insurance Equipment Depreciation
-------------------------- ------------------- -------------------
$12,500
Unearned
Accounts Payable SalariesPayable Fees CommonStock
----------------------- --------------------- ---------------- --------------------
$30,000
Retained Earnings FeesEarned SalaryExpense RentExpense
------------------------ ----------------- ---------------------- ------------------
Depreciation Miscellaneous
Supplies Expense Expense Insurance Expense Expense
----------------------- --------------------- ------------------------- -----------------
