Post the journal entries to their respective ledger accounts

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 1BD
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For the past several years, Angela Smith operated a part-time consulting business from her home. As of September 1, 2020, Angela decided to move to rented quarters and to operate the business on a full-time basis. She has registered the business as Interactive Consulting Ltd but has no prior knowledge of accounting and has approached a member of your group for advice. The company entered the following transactions during September:

 

Sept 1.            The following assets were received from Angela Smith in exchange for capital of Interactive Consulting Ltd: cash - $7,050, accounts receivable - $1,500, supplies - $1,250, and office equipment - $7,200. There were no liabilities received.

  1. Paid three (3) months rent on a lease rental contract, $3,600.
  2.            Paid the premiums on the property and peril insurance policies, $1,500.
  3. Received cash from clients as an advance payment for services to be provided in the coming months, $3,500.
  4. Purchased additional office equipment on account from Payne Company, $1,800.
  5.             Received cash from clients on account, $800.
  6. Paid cash for newspaper advertisement, $120.
  7. Paid Payne Company a portion of the debt incurred on September 5, $800.
  8. Recorded services provided on account for the period September 1 -12, $1,200.
  9. Paid part-time receptionist for two weeks’ salary, $400.
  10. Recorded cash from cash clients for fees earned during the first half of September, $2,100.
  11. Paid cash for supplies, $750.
  12. Recorded services provided on account for the period September 13-20, $1,100.
  13.              Recorded cash from cash clients for fees earned for the period September 17-24, $1,850.
  14. Received cash from clients on account, $1,300.
  15. Paid part-time receptionist for two weeks salary, $400.
  16. Paid telephone bill for September, $130.
  17. Paid electricity bill for September, $200.
  18.              Recorded cash from cash clients for fees earned for the period September 25-30, $1,050.
  19. Recorded services provided on account for the remainder of September, $500.

 

Account #

Account Name

11

Cash

12

Accounts Receivables

14

Supplies

15

Prepaid Rent

16

Prepaid Insurance

18

Office Equipment

21

Accounts Payable

22

Salaries Payable

23

Unearned Fees

31

Capital Stock

41

Fees Earned

51

Salary Expense

52

Rent Expense

53

Supplies Expense

54

Insurance Expense

55

Utilities Expense

56

Advertising Expense

  1. Post the journal entries to their respective ledger accounts.
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