The journal of Anisah’s Baking School for July 2022 is shown below:

Required

1. Describe each transaction.

2. Set up T-accounts using the following account numbers: Cash, #1000; Accounts Receivable, #1200; Baking Supplies, #1400; Accounts Payable, #2000; Anisah Kaur, Capital, #3000; Service Revenue, #4000; Advertising Expense, #5100; Rent Expense, #5600; Utilities Expense, #5800. This is the first month of business, so all opening balances are zero.

3. Post to the T-accounts. Identify each transaction by date. You may write the account numbers as posting references directly in the journal in your book unless directed otherwise by your instructor. Compute the balance in each account after posting.

Transcribed Image Text:

Date Jul. 2 3 9 11 22 25 27 31 Account Titles and Explanations Cash Anisah Kaur, Capital Rent Expense Cash Baking Supplies Journal Accounts Payable Accounts Receivable Service Revenue Cash Accounts Receivable Advertising Expense Cash Accounts Payable Cash Utilities Expense Accounts Payable Post. Ref. Debit 5,600 1,400 54 1,620 280 590 54 564 Page 5 Credit 5,600 1,400 54 1,620 280 590 54 564