Janet Smythe started her personal coaching business, Smythe Personal Coaching, on November 1, 2014. Janet records purchasing supplies as assets and cash received from clients on deposit as unearned revenue. The following transactions occurred during the first month of operations:
Nov. 1 Janet Smythe invested $25,000 personal cash in the business by depositing that amount in the bank account titled Smythe Personal Coaching. The business gave capital to Smythe.
Nov. 1 Paid the November rent on the office space, $1,500.
Nov. 3 Purchased a computer and printer for use in the business; she used her personal credit card in the amount of $1,800. The computer has an expected life of three years with no salvage value.
Nov. 5 Purchased office supplies in the amount of $75 on an account she set up with the store, Ace Office Depot.
Nov. 10 Received $500 from her first client, Robert Jones, as payment in advance for coaching fees. (Record this amount in the account Unearned Coaching Revenue.)
Nov. 17 Travelled to Montreal to attend a personal coaches conference. The conference lasted one week and costs were: travel $1,500; conference registration fee, $750. Used cash from the business to pay for the expenses.
Nov. 25 Paid Ace Office Depot the amount owing from November 5.
Nov. 30 Counted the office supplies and estimated that there was $25 of supplies remaining. Robert Jones had received $100 of coaching during the month.
Required:
Prepare journal entries for the above transactions and the appropriate corresponding adjusting journal entries necessary to prepare financial statements for the month of November.
Date Accounts Debit Credit
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