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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 revenue is the money received for goods or services and the required trial balance is prepared.

See the step by step solution

Step by Step Solution

Step 1: Definition of Unearned Revenue

Revenue is defined as the amount of money received by the business in exchange for services or goods.

Step 2: Preparation of Trial Balance

Shawn Merry

Trial balance

April 30, 2018

Account Title

Debit ($)

Credit ($)



Accounts Receivables


Office Supplies








Accounts Payable


Unearned Revenue


Common Stock




Service Revenue


Salaries Expense


Rent Expense





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