The trial balance of Harper Service Center on March 1, 2019, lists the entity’s assets, liabilities, and equity on that date Account title balance debit credit Cash
The
Account title
balance
debit
credit
Cash
$26 000 4 500
$30 500
$2 000 28 500 $30 500
During March, the business engaged in the following transactions:
a. Borrowed $55,000 from the bank and signed a note payable in the name of the business. b. Paid cash of $30,000 to acquire land.
c. Performed service for a customer and received cash of $5,500.
d. Purchased supplies on account, $600.
e. Performed customer service and earned revenue on account, $3,400.
f. Paid $1,100 on account.
g. Paid the following cash expenses: salaries, $2,000; rent, $1,200; and interest, $500. h. Received $3,000 on account.
i. Received a $260 utility bill that will be paid next week.
j. The owner invest cash of $1,500 to the company .
Requirements
Open the following accounts, with the balances indicated, in the ledger of Harper Service Center. Use the T-account format.
Assets—Cash, $26,000; Accounts receivable, $4,500; Supplies, no balance;Land, no balance Liabilities—Accounts payable, $2,000; Note payable, no balance
Owner’s equity—Harper, capital, $28,500; Harper, drawing, no balance
Revenue—Service revenue, no balance
Expenses—(none have balances) Salary expense, Rent expense, Utilities expense, Interest expense
(1) Journalize each transaction. Key
(2) Post to the ledger.
3) Prepare the trial balance of Harper Service Center at March 31, 2014
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