Walker's Inspection Services is in its second month of operations. You have been given the following journal entries regarding its January 2014 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, 2013: Cash (101) $850; Accounts Receivable (106) $3(K); Equipment (167) $1,500; Accounts Payable (201) $325; Jay Walker, Capital (301) $2,325; Jay Walker, Withdrawals (302) $3(K); Fees Earned (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?

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General Journal Page 1 Account Titles and Explanation PR Debit Credit Date 2014 Jan. 1 Cash 3,500 3,500 Jay Walker, Capital.. Additional owner investment. 12 Accounts Receivable 9,000 9,000 Performed work for a customer on account. 20 Equipment 12,000 Accounts Payable Cash 10,000 2,000 Purchased equipment by paying cash and the balance on credit. 31 Cash... 5,000 5,000 Collected cash from credit customer 31 Salaries Expense 3,000 Cash 3,000 Paid month-end salaries 31 Jay Walker, Withdrawals... 750 Cash 750 Jay Walker withdrew cash for personal use.