Journal Entries, Posting, & Trial Balance

GIVEN: John Smith established John's Antique Appraisals Company and completed the following transactions during January 2017,

the first month of operations.

a.

Opened a business bank account with a deposit of $190,000 in exchange for capital stock.

b.

Purchased a car for use in the business, paid $4000 down (from the business account) and signed a note for $30,000.

c.

Paid $2,500 monthly rent on office.

d.

Signed a business cell phone plan. Paid $800 for the first month.

e.

Purchased $5,000 of office supplies (an asset) on account.

f.

Received $17,000 in cash from customers for appraisals completed.

g.

Paid half of the office supplies bill from (e).

h.

Paid office salaries of $9,000.

i.

Billed customers for $40,000 of appraisal performed.

j.

Paid dividends of $3,000.

REQUIRED:

Part 1:

Prepare journal entries for the items above. Journal entry explanations may be omitted.

(Leave a blank row between transactions.) Use the following accounts:

101

Cash

310

Capital Stock

105

Accounts Receivable

370

Dividends

110

Office Supplies

410

Fees Earned

120

Automobile

510

Salaries Expense

201

Accounts Payable

520

Phone Expense

220

Notes Payable

530

Rent Expense

Part 2:

Prepare T accounts for the accounts listed in part 1. Post the journal entries to the T accounts.

Label each entry with the letter for the transaction item. When the postings are complete,

calculate the balance for each T account.

Part 3:

Prepare a trial balance as of the end of July.

Part 1:

Trans.

Account Titles

Debit

Credit

Part 2:

Cash

Notes Payable

Part 3:

John's Antique Appraisals Company

a.

Trial Balance

As of January 31, 2017

Capital Stock

Debit Balances

Credit Balances

b.

101

Cash

Dividends

105

Accounts Receivable

0

110

Office Supplies

c.

120

Automobile

Accounts Receivable

Fees Earned

201

Accounts Payable

220

Notes Payable

d.

310

Capital Stock

Office Supplies

370

Dividends

410

Fees Earned

e.

Salaries Expense

510

Salaries Expense

Automobile

520

Phone Expense

530

Rent Expense

f.

Phone Expense

Totals

Accounts Payable

g.

Rent Expense

h.

i.

j.