Problem P2-2A

Emily Valley is a licensed dentist. During the first month of the operation of her business, the
following events and transactions occurred:
Emily uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126
Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 301 Owner's
Capital, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent
Expense.

  Emily Valley
General Journal entry

Date Account Titles   Ref Debit Credit

1-Apr Cash Dr.   20000  
Owner's capital Cr. 20000
Invested cash in business        
1-Apr No entry        
(Hire is not financial transactions)        
2-Apr Rent Expenses Dr.   1100  
Cash Cr. 1100
Paid cash for office rent        
3-Apr supplies Dr.   4000  
accounts payable Cr. 4000
Purchased supply from Dazzle company        
10-Apr Accounts receivable Dr.   5100  
Service Revenue Cr. 5100
Billed customer for service        
11-Apr Cash Dr.   1000  
unearned service revenue Cr. 1000
Received advance        
20-Apr Cash Dr.   2100  
Service revenue Cr.     2100
30-Apr Salary Expense Dr.   2800  
Cash Cr.     2800
30-Apr Accounts Payable Dr.   2400  
Cash Cr. 2400
Paid creditors account        

General Ledger

General Ledger
 Date Explanation Ref Dr. Cr. Balance
1-Apr Owner's Capital   20,00   20,000
0
2-Apr Rent     1,100 18,900
11-Apr Unearned service Revenue   1,000   19,900
20-Apr Service Revenue   2,100   22,000
30-Apr Salary     2,800 19,200
30-Apr Accounts Payable     2,400 16,800

Trial Balance

Trial Balance
Sl. No Accounts Title Dr. Cr.
101 Cash 16,800
112 accounts Receivable 5,100
126 Supplies 4,000
201 Accounts Payable 1,600
209 Unearned Service Revenue 1,000
301 Owner's Capital 20,000
400 Service Revenue 7,200
726 Salary Expenses 2800
729 Rent Expenses 1100
Total 29,800 29,800