Braeden Miller opened an accounting firm on January 1, 2016. During the month of January, the business

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Braeden Miller opened an accounting firm on January 1, 2016. During the month of January, the business completed the following transactions:

Jan 1 The business sold $55.000 of common stock to open the firm.

Miller & Associates. Inc.

3 Purchased supplies, $100, and furniture, $1200, on account.

5 Performed accounting service for a client and received cash, $3.000.

8 Paid cash to acquire land for a future office site, $24,000.

11 Prepared tax returns for a client on account, $2.700.

14 Paid assistants salary, $650

16 Paid $1,150 on account.

19 Received $2500 cash for accounting services performed.

23 Billed a client for $1,300 of accounting services.

28 Received $300 from client on account.

31 Paid assistants salary, $650.

31 Paid rent expense, $1,700

31 Paid $1,100 of dividends


Requirements

1. Open or set up the following T-accounts: Cash, Accounts Receivable, Supplies, Furniture, Land, Accounts Payable, Common Stock, Dividends, Service Revenue, Salaries Expense, and Rent Expense.

2. Journalize transactions. Explanations are not required.

3. Post the transactions to the T-accounts, using transaction dates as posting references.

4. Calculate the balance in each account at January 31, 2016.

5. Prepare the trial balance for Miller & Associates, Inc., at January 31, 2016?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0134436111

4th edition

Authors: Robert Kemp, Jeffrey Waybright

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