Sato Inspection Services is in its second month of operations. You have been given the following journal entries regarding its January 2020 transactions.

Required

a. Set up the following accounts (use the balance column format) entering the opening balances brought forward from the end of last month, December 31, 2019: Cash (101) $850; Accounts Receivable (106) $300; Equipment (167) $1,500; Accounts Payable (201) $325; Toshi Sato, Capital (301) $2,325; Toshi Sato, Withdrawals (302) $300; Revenue (401) $1,800; and Salaries Expense (622) $1,500.

b. Post the journal entries to the accounts and enter the balance after each posting.

Analysis Component: The accounting cycle requires that transactions be journalized in the general journal and then posted in the general ledger. This seems to indicate that we are recording the same information in two different places. Why can?t we eliminate journalizing or posting?

Transcribed Image Text:

General Journal Page 1 Account Titles and Explanation Date PR Debit Credit 2020 Cash 3,500 Jan, Toshi Sato, Capital. 3,500 Additional owner investment. Accounts Receivable. 12 9,000 Revenue. 9,000 Performed work for a customer on account. Equipment. 20 12,000 Accounts Payable. 10,000 2,000 Cash. Purchased equipment by paying cash and the balance on credit. 5,000 31 Cash. Accounts Receivable 5,000 Collected cash from credit customer.