ledger

EXERCISE 3.12 Journalizing. Posting, and Preparing a Trial Balance Herrold Consulting incorporated on February 1, 2011. The company engaged in the following transactions during its first month of operations: Feb. 1 Issued capital stock in exchange for $750,000 cash. Feb. 5 Borrowed $50,000 from the bank by issuing a note payable. Feb. 8 Purchased land, building, and office equipment for $600,000. The value of the land was $100,000, the value of the building was $450,000, and the value of the office equipment was $50,000. The company paid $300,000 cash and issued a note payable for the balance. Feb. 11 Purchased office supplies for $600 on account. The supplies will last for several months. Feb. 14 Paid the local newspaper $400 for a full-page advertisement. The ad will appear in print on February 18 . Feb. 20 Several of the inkjet printer cartridges that Herrold purchased on February 11 were defective. The cartridges were returned and the office supply store reduced Herrold's outstanding balance by $100. Feb. 22 Performed consulting services for $6,000cash. Feb. 24 Billed clients $9,000. Feb. 25 Paid salaries of $5,000. Feb. 28 Paid the entire outstanding balance owed for office supplies purchased on February 11. Chapter 3 The Accounting Cycle: Capturing Economic Events A partial list of the account titles used by the company includes: a. Prepare joumal entries, including explanations, for the above transactions. b. Post each entry to the appropriate ledger accounts (use the T account format as illustrated in Exhibit 38 on page 108). c. Prepare a trial balance dated February 28, 2011. Assume accounts with zero balances are not included in the trial balance