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3 years ago

Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance

Business

1 answer:

andriy [413]3 years ago

7 0

Answer:

1. Record each transaction in the journal. Explanations are not required.

April 1

Dr Cash 70,000

Cr Common stock 70,000

April 3

Dr Office supplies 1,100

Dr Furniture 1,300

Cr Accounts payable 2,400

April 4

Dr Cash 2,000

Cr Service revenue 2,000

April 7

Dr Land 30,000

Dr Building 150,000

Cr Cash 40,000

Cr Notes payable 140,000

April 11

Dr Accounts receivable 400

Cr Service revenue 400

April 15

Dr Salaries expense 1,200

Cr Cash 1,200

April 16

Dr Accounts payable 1,100

Cr Cash 1,100

April 18

Dr Cash 2,700

Cr Service revenue 2,700

April 19

Dr Accounts receivable 1,700

Cr Service revenue 1,700

April 25

Dr Utilities expense 650

Cr Accounts payable 650

April 28

Dr Cash 1,100

Cr Accounts receivable 1,100

April 29

Dr Prepaid insurance 3,600

Cr Cash 3,600

April 29

Dr Salaries expense 1,200

Cr Cash 1,200

April 30

Dr Rent expense 2,100

Cr Cash 2,100

April 30

Dr Dividends 3,200

Cr Cash 3,200

2. Open the following four-column accounts including account numbers:

3. Post the journal entries to four-column accounts in the ledger,

I used an excel spreadsheet to answer questions 2 and 3

4. Prepare the trial balance of Theodore McMahon, Attorney, at April 30, 2018.

In order to prepare a trial balance we must prepare an income statement first.

Service revenue $6,800

Salaries expense -$2,400

Rent expense -$2,100

Utilities expense -$650

Net income $1,650

retained earnings = net income - dividends = $1,650 - $3,200 = -$1,550

Theodore McMahon, Attorney

Balance Sheet

For the Month Ended April 30, 2018

Assets:

Cash $23,400

Accounts receivable $1,000

Prepaid insurance $3,600

Office supplies $1,100

Furniture $1,300

Land $30,000

Building $150,000

Total assets: $210,400

Liabilities and Equity:

Accounts payable $1,950

Notes payable $140,000

Common stock $70,000

Retained earnings ($1,550)

Total liabilities and equity: $210,400

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