too chspter 2 Learning Objectives 3, 4 2-A Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance Terrence Murphy opened s law office on Jamiary 1, 2018 During the firse month operations, the bsiness completed the follewring as Canh Balnce $50,160 an. 1 Murphy contributed $78,000 cash to the business, Terrence Murphy Attorney. The business gave capital to Murphy 3 Purchased office supplies, $600, and furniture, $1,700, on account / Performed legal services for a client and received $1,000 cash 7 Purchased a building with a market value of $130.000, and land with market value of $25,000. The business paid $25,000 cash and signed a note payable to the bank for the rermaining amount 11 Prepared legal documents for a client on account, $400 15 Paid assistant's semimonthly salary, $1,120 16 Paid for the office supplies purchased on January 3 on account 18 Received $2,700 cash for helping a client sell real estate 19 Defended a client in court and billed the client for $1,800 25 Received a bill for utilities, $600. The bill will be paid next month 29 Received cash on account, $1,500 30 Paid $1,200 cash for a 12-month insurance policy starting on February 1. 30 Paid assistant's semimonthly salary, $1,120 31 Paid monthly rent expense, $1,800 31 Murphy withdrew cash of $2,200 Requirements 1. Record cach transaction in the journal, using the following account titles: Cash; Accounts Receivable; Office Supplies Prepaid Insurance; Land, Building Furniture; Accounts Payable; Uilities Payable; Notes Payable; M Murphy, Withdrawals, Service Revenue; Salaries Expense, Rent Expense; and Unli ties Expense. Explanations are not required. Murpby, Capital, 2. Open the following four column accounts including account numbers: Cash, 101 Accounts Receivable, 111 Office Supplies, 121; Prepaid Insurance, 131; Land, 141; Building, 151; Furniture, 161, Accounts Payable, 201, Utilities Payable, 211; Notes Payable, 221; Murphy, Capital, 301; Murphy, Withdrawals, 311; Service Revenuc, 411; Salaries Expense, 511; Rent Expense, 521, and Utilities Expense, 531 Post the journal entries to four column accounts in the ledger, using dates, accoam numbers, journal references, and posting references. Assume the journal entries were recorded on page 1 of the journal 3. 4. Pfepare the trial balance of Terrence Murphy, Attorney, at Jamsary 31, 2018