Question: Preparing a trial balance from T-accounts
The T-accounts of McMahon Farm Equipment Repair follow as of May 31, 2018.
ASSETS Salaries Payable LIABILITIES EQUITY Retained Earnings 4,000 29,000 Notes Payable 3,500 400 Accounts Receivable 14,000 Land 29,000 Building 16,000 Equipment Common Stock Contributed Capital Dividends Property Tax Expense 1,000 Advertising Expense 280
Cash 31,000 1,800 400 14,000 4,200 800 4,000 2,000 3,380
Service Revenue 3,500 1,800 4,200 31,000 2
The total forthe debit side and credit side is $80,700
McMahon Farm Equipment Repair
May 31, 2018
Property Tax Expense
Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance
The trial balance of Shawn Merry, CPA, is dated March 31, 2018: During April, the business completed the following transactions:
Office Supplies 400
Accounts Receivable 16,500
Accounts Payable 3,800
Unearned Revenue 0
Common Stock 52,300
Rent Expense 800
Salaries Expense 5,600
Service Revenue 8,200
Total Balance $ 64,300 64,300
During April, the business completed the following transactions:
Apr. 4 Collected $2,500 cash from a client on account.
8 Performed tax services for a client on account, $5,400.
13 Paid $3,000 on account.
14 Purchased furniture on account, $3,600.
15 Merry contributed his personal automobile to the business in exchange for common stock. The automobile had a market value of $9,500.
18 Purchased office supplies on account, $900.
19 Received $2,700 for tax services performed on April 8.
20 Paid cash dividends of $6,500.
21 Received $5,700 cash for consulting work completed.
24 Received $2,400 cash for accounting services to be completed next month.
27 Paid office rent, $600.
28 Paid employee salary, $1,700.
Question: Journalizing transactions, posting journal entries to T-accounts, and preparing a trial balance
Vince York practices medicine under the business title Vince York, M.D. During July, the medical practice completed the following transactions:
Jul. 1 York contributed $63,000 cash to the business in exchange for common stock.
5 Paid monthly rent on medical equipment, $510.
9 Paid $23,000 cash to purchase land to be used in operations.
10 Purchased office supplies on account, $1,600.
19 Borrowed $22,000 from the bank for business use.
22 Paid $1,100 on account.
28 The business received a bill for advertising in the daily newspaper to be paid in August, $240.
31 Revenues earned during the month included $6,400 cash and $6,000 on account.
31 Paid employees’ salaries $2,200, office rent $1,900, and utilities $560. Record as a compound entry.
31 The business received $1,120 for medical screening services to be performed next month.
31 Paid cash dividends of $7,200.
The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Accounts Payable; Advertising Payable; Unearned Revenue; Notes Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense; and Advertising Expense.
Requirements 1. Journalize each transaction. Explanations are not required
Journalizing transactions, posting to T-accounts, and preparing a trial balance
Problem P2-42 continues with the company introduced in Chapter 1, Canyon Canoe Company. Here you will account for Canyon Canoe Company’s transactions as it is actually done in practice. Begin by reviewing the transactions from Chapter 1. The transactions have been reprinted below.
Nov. 1 Received $16,000 cash to begin the company and issued common stock to Amber and Zach.
2 Signed a lease for a building and paid $1,200 for the first month’s rent.
3 Purchased canoes for $4,800 on account.
4 Purchased office supplies on account, $750.
7 Earned $1,400 cash for rental of canoes.
13 Paid $1,500 cash for wages.
15 Paid $50 dividends to stockholders.
16 Received a bill for $150 for utilities. (Use separate payable account.)
20 Received a bill for $175 for cell phone expenses. (Use separate payable account.)
22 Rented canoes to Early Start Daycare on account, $3,000.
26 Paid $1,000 on account related to the November 3 purchase.
28 Received $750 from Early Start Daycare for canoe rental on November 22.
30 Paid $100 dividends to stockholders
In addition, Canyon Canoe Company completed the following transactions for December.
Dec. 1 Amber and Zack contributed land on the river (worth $85,000) and a small building to use as a rental office (worth $35,000) in exchange for common stock.
1 Prepaid $3,000 for three months’ rent on the warehouse where the company stores the canoes.
2 Purchased canoes signing a note payable for $7,200
4 Purchased office supplies on account for $500.
9 Received $4,500 cash for canoe rentals to customers.
15 Rented canoes to customers for $3,500, but will be paid next month.
16 Received a $750 deposit from a canoe rental group that will use the canoes next month.
18 Paid the utilities and telephone bills from last month.
19 Paid various accounts payable, $2,000.
20 Received bills for the telephone ($325) and utilities ($295) which will be paid later.
31 Paid wages of $1,800. 31 Paid cash dividend to stockholders, $300.
1. Journalize the transactions for both November and December, using the following accounts: Cash; Accounts Receivable; Office Supplies; Prepaid Rent; Land; Building; Canoes; Accounts Payable; Utilities Payable; Telephone Payable; Unearned Revenue; Notes Payable; Common Stock; Dividends; Canoe Rental Revenue; Rent Expense; Utilities Expense; Wages Expense; and Telephone Expense. Explanations are not required. (Hint: For November transactions, refer to your answer for Chapter 1.)
2. Open a T-account for each of the accounts.
3. Post the journal entries to the T-accounts, and calculate account balances. Formal posting references are not required.
4. Prepare a trial balance as of December 31, 2018.
5. Prepare the income statement of Canyon Canoe Company for the two months ended December 31, 2018.
6. Prepare the statement of retained earnings for the two months ended December 31, 2018.
7. Prepare the balance sheet as of December 31, 2018.
8. Calculate the debt ratio for Canyon Canoe Company at December 31, 2018
Journalizing transactions, posting journal entries to T-accounts, and preparing a trial balance
Ann Simpson started her practice as a design consultant on September 1, 2018. During the first month of operations, the business completed the following transactions:
Sep. 1 Received $48,000 cash and issued common stock to Simpson.
4 Purchased office supplies, $1,200, and furniture, $1,300, on account.
6 Performed services for a law firm and received $1,900 cash.
7 Paid $18,000 cash to acquire land to be used in operations.
10 Performed services for a hotel and received its promise to pay the $1,200 within one week.
14 Paid for the furniture purchased on September 4 on account.
15 Paid assistant’s semimonthly salary, $1,500.
17 Received cash on account, $1,000.
20 Prepared a design for a school on account, $650.
25 Received $2,100 cash for design services to be performed in October.
28 Received $2,900 cash for consulting with Plummer & Gordon.
29 Paid $600 cash for a 12-month insurance policy starting on October 1.
30 Paid assistant’s semimonthly salary, $1,500.
30 Paid monthly rent expense, $600.
30 Received a bill for utilities, $350. The bill will be paid next month.
30 Paid cash dividends of $3,700.
Requirements 3. Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal
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