3 During May Jone Consulting entered into the following entr

3 During May, Jone Consulting entered into the following entries for them. (30 percent) May. 1. The following assets were received from the owner-Jone Pitney: cash 5,000, accounts receivable, $3,000: supplies, S1,400; office equipment $6,500 2. Paid the premiums on property and casualty insurance polices,$1800 4. Equipment costing $8,000 is purchased for $5,000 cash and an account payable of $3,000. 5. Supplies inventory costing $8,000 is bought on account 6. Received cash from clients on account, $5,800. 14. Paid part-time receptionist for two weeks\' salary, $750 20. Recorded services provided on account for the period May 13-20, $2,100. 24. Customers pay $1,000 of the $5,000 they owe the company. 30. Jone determined that the cost of supplies on hand was $750. The beginning balance of supplies is $1,550. (Attention: On May 5, Supplies inventory costing $8,000 is bought) 30. Jone Consulting paid $580 for a nespaper advertisement.

Solution

Journal Entry Date Accounting titles & Explanations Debit Credit 1-May Cash 25,000 Accounts receivable 3,000 supplies 1,400 office Equipment 6,500 Jones capital 35,900 2-May prepaid insurance 1,800 cash 1,800 4-May Equipment 8,000 Cash 5,000 Accounts payable 3,000 5-May Supplies 8,000 Accounts payable 8,000 6-May Cash 5,800 Accounts receivable 5,800 14-May Salary & wages 750 cash 750 20-May Accounts receivable 2,100 service revenue 2,100 24-May Cash 1,000 Accounts receivable 1,000 30-May Supplies expense 8,800 cash 8,800 (1,550+8000-750= 8800 30-May Advertising expense 580 cash 580