Question

The trial balance of Sam Mitchell, CPA, is dated January 31, 2015:


During February, the business completed the following transactions:
Feb. 4 Collected $ 4,000 cash from a client on account.
8 Performed tax services for a client on account, $ 4,600.
13 Paid $ 2,400 on account.
14 Purchased furniture on account, $ 3,000.
15 Mitchell contributed his personal automobile to the business in exchange for common stock. The automobile had a market value of $ 8,500.
18 Purchased office supplies on account, $ 900.
19 Received $ 2,300 for tax services performed on February 8.
20 Paid cash dividends of $ 2,200.
21 Received $ 2,300 cash for consulting work completed.
24 Received $ 1,000 cash for accounting services to be completed next month.
27 Paid office rent, $ 500.
28 Paid employee salary, $ 1,600.

Requirements
1. Record the February transactions in the journal. Use 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 January 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 Sam Mitchell, CPA, at February 28,2015.


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  • CreatedJanuary 16, 2015
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