Question

The trial balance of John Hilton, CPA, is dated March 31, 2015:


During April, the business completed the following transactions:
Apr. 4 Collected $ 7,000 cash from a client on account.
8 Performed tax services for a client on account, $ 5,000.
13 Paid $ 2,500 on account.
14 Purchased furniture on account, $ 4,000.
15 Hilton contributed his personal automobile to the business in exchange for common stock. The automobile had a market value of $ 10,500.
18 Purchased office supplies on account, $ 600.
19 Received $ 2,100 for tax services performed on April 8.
20 Paid cash dividends of $ 2,300.
21 Received $ 2,100 cash for consulting work completed.
24 Received $ 3,000 cash for accounting services to be completed next month.
27 Paid office rent, $ 300. 28 Paid employee salary, $ 1,300.

Requirements
1. Record the April transactions in the journal using the following accounts: Cash; Accounts Receivable; Office Supplies; Furniture; Automobile; Land; Accounts Payable; Unearned Revenue; Common Stock; Dividends; Service Revenue; Salaries Expense; and Rent Expense. Include an explanation for each entry.
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; Furniture, 14; Automobile, 15; Land, 16; Accounts Payable, 21; Unearned Revenue, 22; Common Stock, 31; Dividends; 33; Service Revenue, 41; Salaries Expense, 51; and Rent Expense, 52.
3. Post the journal entries to four-column accounts in the ledger, using dates, account numbers, journal references, and posting references. Assume the journal entries were recorded on page 5 of the journal. 4. Prepare the trial balance of John Hilton, CPA, at April 30,2015.


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  • CreatedJanuary 16, 2015
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