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; 

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.

Transcribed Image Text:

JOHN HILTON, CPA TrHal Balance March 31, 2015 Account mtle Debit 5,00 8,100 Accounts Receivable Office Supplies Land Accounts Payable Unearned Revenue Common Stock 9,000 S 4,200 13,700 Service Revenue Salaries Expense Rent Expense 10,000 3,500 1,500 S 27,900 27