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Horngren'S Financial And Managerial Accounting
Found in: Page 110

Short Answer

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:

Cash 17,000

Office Supplies 1,200

Accounts Receivable 10,500

Land 29,000

Furniture 0

Automobile 0

Accounts Payable 3,800

Unearned Revenue 0

Common Stock 46,200

Dividends 0

Rent Expense 1,000

Salaries Expense 2,500

Service Revenue 11,200

Total Balance $ 61,200 61,200

During April, the business completed the following transactions:

Apr. 4 Collected $6,000 cash from a client on account.

8 Performed tax services for a client on account, $5,500.

13 Paid $3,300 on account.

14 Purchased furniture on account, $4,000.

15 Menning contributed his personal automobile to the business in exchange for common stock. The automobile had a market value of $11,500.

18 Purchased office supplies on account, $1,600.

19 Received $2,750 for tax services performed on April 8.

20 Paid cash dividends of $7,500.

21 Received $4,900 cash for consulting work completed.

24 Received $2,500 cash for accounting services to be completed next month.

27 Paid office rent, $900.

28 Paid employee salary, $1,200.

Requirements 2. Open the four-column ledger accounts listed in the trial balance, together with their balances as of March 31. Use the following account numbers: Cash, 11; Accounts Receivable, 12; Office Supplies, 13; Land, 14; Furniture, 15; Automobile, 16; Accounts Payable, 21; Unearned Revenue, 22; Common Stock, 31; Dividends, 33; Service Revenue, 41; Salaries Expense, 51; and Rent Expense, 52.

The common stock shows ownership of the company and required four-column accounts are opened in step 2.

See the step by step solution

Step by Step Solution

Step 1: Definition of Common Stock

The common stock is defined as the financial instrument which represents ownership of the company.

Step 2: Opening Four-Column Accounts

Cash Account Number – 11

Balance

Date

Item

PR

Debit

Credit

Debit

Credit

$17,000

Accounts Receivables Account Number - 12

Balance

Date

Item

PR

Debit

Credit

Debit

Credit

$10,500

Office Supplies Account Number - 13

Balance

Date

Item

PR

Debit

Credit

Debit

Credit

$1,200

Land

Account Number - 14

Balance

Date

Item

PR

Debit

Credit

Debit

Credit

$29,000

Furniture Account Number - 15

Balance

Date

Item

PR

Debit

Credit

Debit

Credit

$0

Automobile Account Number – 16

Balance

Date

Item

PR

Debit

Credit

Debit

Credit

$0

Accounts Payable Account Number - 21

Balance

Date

Item

PR

Debit

Credit

Debit

Credit

$3,800

Unearned Revenue Account Number - 22

Balance

Date

Item

PR

Debit

Credit

Debit

Credit

$0

Common Stock Account Number – 31

Balance

Date

Item

PR

Debit

Credit

Debit

Credit

$46,200

Dividends Account Number – 33

Balance

Date

Item

PR

Debit

Credit

Debit

Credit

$0

Service Revenue Account Number - 41

Balance

Date

Item

PR

Debit

Credit

Debit

Credit

$11,200

Salaries Expense Account Number – 51

Balance

Date

Item

PR

Debit

Credit

Debit

Credit

$2,500

Rent Expense Account Number - 52

Balance

Date

Item

PR

Debit

Credit

Debit

Credit

$1,000

Most popular questions for Business-studies Textbooks

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 1. Record each transaction in the journal using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Land; Furniture; Accounts Payable; Utilities Payable; Unearned Revenue; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required.

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:

Cash 11,000

Office Supplies 400

Accounts Receivable 16,500

Land 30,000

Furniture 0

Automobile 0

Accounts Payable 3,800

Unearned Revenue 0

Common Stock 52,300

Dividends 0

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.

Requirements

  1. Record the April transactions in the journal. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Furniture; Automobile; Accounts Payable; Unearned Revenue; Common Stock; Dividends; Service Revenue; Salaries Expense; and Rent Expense. Include an explanation for each entry
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