Zeb Slipewicz opened a renovation business called Creature Construction on September 3,
2014. During the first month of operations, the business completed the following transactions:
Sept. 3 Zeb deposited his cheque for $36,000 into the business bank account to start the business.
4 Purchased supplies, $300, and furniture, $2,200, on account.
5 Paid September rent expense, $750 cash.
6 Performed design services for a client and received $1,200 cash.
7 Paid $22,000 cash to acquire land for a future office site.
10 Designed a bathroom for a client, billed the client, and received her promise to pay the $2,900 within one week.
14 Paid for the furniture purchased September 4 on account.
15 Paid assistant's salary, $470 cash.
17 Received cash on account, $1,700.
22 Received $2,500 cash from a client for renovation of a cottage.
25 Prepared a recreation room design for a client on account, $800.
30 Paid assistant's salary, $470 cash.
30 Zeb withdrew $2,800 cash for personal use.
Required
Open the following T-accounts: Cash; Accounts Receivable; Supplies; Furniture; Land; Accounts Payable; Z. Slipewicz, Capital; Z. Slipewicz, Withdrawals; Service Revenue; Rent Expense; Salary Expense.
1. Record each transaction in the journal with an explanation, using the account titles given. Identify each transaction by date.
2. Post the transactions to the T-accounts, using transaction dates as posting references in the T-accounts. Label the balance of each account Bal. , as shown in the chapter.
3. Prepare the trial balance of Creature Construction at September 30, 2014.