Question: Tucker Stevens opened an accounting firm on October 1 2012

Tucker Stevens opened an accounting firm on October 1, 2012. During the month of
October, the business completed the following transactions:

Oct 1 The business sold $50,000 of common stock to open the firm, Stevens & Associates, Inc.
3 Purchased supplies, $300, and furniture, $1,300, on account.
5 Performed accounting service for a client and received cash, $1,800.
8 Paid cash to acquire land for a future office site, $25,000.
11 Prepared tax returns for a client on account, $2,500.
14 Paid assistant’s salary, $600.
16 Paid for the furniture purchased October 3 on account.
19 Received $300 cash for accounting services performed.
23 Billed a client for $1,700 of accounting services.
28 Received $400 from client on account.
31 Paid secretary’s salary, $600.
31 Paid rent expense, $1,500.
31 Paid $1,800 of dividends.

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 October 31, 2012.
5. Prepare the trial balance for Stevens & Associates, Inc., at October 31, 2012.

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  • CreatedApril 29, 2014
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