Lena Fohn is a licensed accountant. During the first month of operations of her business, Lena Fohn, AG, the following
May 1 Shareholders invested €20,000 cash in exchange for ordinary shares.
2 Hired a secretary-receptionist at a salary of €2,000 per month.
3 Purchased €1,500 of supplies on account from Hartig Supply Company.
7 Paid office rent of €900 cash for the month.
11 Completed a tax assignment and billed client €2,800 for services performed.
12 Received €3,500 advance on a management consulting engagement.
17 Received cash of €1,200 for services performed for Lucille Co.
31 Paid secretary-receptionist €2,000 salary for the month.
31 Paid 40% of balance due Hartig Supply Company.
Lena uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 311 Share Capital-Ordinary, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.
(a) Journalize the transactions.
(b) Post to the ledger accounts.
(c) Prepare a trial balance on May 31, 2017.
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Step by Step Answer:
Chapter # 2
Section: Problem Set A
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Question Posted: April 07, 2017 10:57:23