January 1: Lisa Walters deposits $30,000 cash into a business checking account to start a CPA consulting business, named Lisa Walters, CPA.
January 1: The business pays $2,500 to purchase a new computer. The computer has a salvage value of $700 and an estimated useful life of 3 years (36 months)
January 1: The business pays $1,200 to purchase a new printer/copier/scanner/fax machine. The machine has a salvage value of $0 and an estimated life of 3 years (36 months).
January 1: The business pays $1,800 for 3 months office rent (January, February and March).
January 5: The business receives $1,000 and agrees to perform accounting services for a client in the future.
January 7: The business performs accounting services for a client and bills that client $2,000. The client agrees to pay that bill in February January 10: The business incurs routine office expenses (use office expense) of $1,200. The business agrees to pay this bill in February January 15: The business pays utilities expense of $750
January 20: The business performs accounting services for a client and bills that client $1,000. The client pays $200 today and agrees to pay the remaining $800 in February
January 20: The business performs accounting services for a client and bills that client $1,000. The client pays $200 today and agrees to pay the remaining $800 in February
January 25: The business performs accounting services for a client and collects $2,500 in cash for those services.
January 30: The business paid $500 cash dividend to Lisa Walters.
Do Journal Entries for each transaction label them by date. (25% of grade on assignment) Make your journal entries for depreciation (computer & printer) as well as your entries to adjust the prepaid rent and the unearned revenue (Jan 5 transaction, assume that of the services were performed in the month of January). The business uses the accrual method of accounting. Now, after all entries are posted, prepare an income statement (25% of grade), statement of retained earnings (25%) and balance sheet (25%) for this company for January 31, 2020.
