Chapter 2, Problem 33AP

Journalizing, posting, and preparing a trial balance (Learning Objectives 3 & 4) 20-25 min.

Braeden Miller opened an accounting firm on January 1, 2018. During the month of January, the business completed the following transactions:

Jan 1	The business sold $55,003 of common stock to open the firm, Miller & Associates, Inc.
3	Purchased supplies, $100, and furniture, $1,200, on account.
5	Performed accounting service for a client and received cash, $3,000.
8	Pad cash to acquire land for a future office site, $24,000.
11	Prepared tax returns for a client on account, $2,700.
14	Paid assistant’s salary, $650.
16	Paid $1,150 on account.
19	Received $2,500 cash for accounting services performed.
23	Billed a client for $1,300 of accounting services.
28	Revived $300 from client on account
31	Paid assistant’s salary. $650.
31	Paid rent expense, $1,700.
31	Paid $1,100 of dividends.

Requirements

1. 1. Open or set up the following T-accounts: Cash, Accounts Receivable, Supplies, Land, Furniture, Accounts Payable, Common Stock, Dividends, Service Revenue, Salaries Expense, and Rent Expense.
2. 2. Journalize transactions. Explanations are not required.
3. 3. Post the transactions to the T-accounts, using the transaction dates as posting references.
4. 4. Calculate the balance in each account at January 31, 2018.
5. 5. Prepare the trial balance for Miller & Associates, Inc., at January 31, 2018.