90.2K

Verified Solution

Link Copied!

Mr. Richard Blaine opens a new private detective business, which he calls Richard Blaine, PI. Mr. Blaine has no partners.

During the month of April, Richard Blaine, PI is involved in the transactions listed below.

Richard Blaine, PI maintains its books using the accrual basis of accounting. Enter all of the foregoing entries in the General Journal. Do adjusting entries as of April 30. You do not need to put explanations for the entries. Blaine uses the straight line depreciation method. You can ignore income taxes. You do NOT need to do closing entries.

April 1	Mr. Blaine invests $10,000 in Richard Blaine, PI
April 1	Richard Blaine, PI pays $500 for two months of on-line advertising in Casablanca Magazine. The first ad appears on-line on April 1.
April 1	Richard Blaine, PI purchases a computer system for $5,000 in cash. The system has a useful life of 4 years and $200 salvage value.
April 1	Richard Blaine, PI borrows $20,000 from Mr. Victor Laszlo and signs a promissory note to pay Laszlo back in four annual installments, with payments to be made every January 1. The annual interest rate on the note is 12%.
April 5	Richard Blaine, PI provides services to a husband, who asked that his business partner be investigated, receiving $2,500 in cash.
April 10	Realizing he owes money to his bookmaker, Louis Renault, as a down payment on his outstanding gambling debt, Mr. Blaine takes $1,600 from Richard Blaine, PI to pay Renault
April 22	On behalf of Richard Blaine, PI, Blaine agrees to a lecture series at the local community college. He is to provide 5 lectures and receives $5,000. The first lecture takes place on April 22 and the other lectures will take place in the future.
April 25	Richard Blaine, PI rents office space to a friend, Sam, for $50 a day. Sam will not make his first payment until May 25.

Answer & Explanation Solved by verified expert

See Answer