Concept explainers
Journalizing transactions, posting
The following transactions occurred during the month lor Tori Peel. CPA:
Jun 1 Peel opened an accounting firm by contributing $13,500 cash and office furniture with a fair market value of $5,400 in exchange for capital,
5 Paid monthly rent of $ 1.300.
9 Purchased office supplies on account, $800.
14 Paid employee's salary, $ 1,700.
18 Received a bill for utilities to be paid next month, $250.
21 Paid $600 of the accounts payable created on June 9.
25 Performed accounting services on account, $5,900 28 Peel withdrew cash of $6,900
Requirements
- Open the following four-column accounts ofTori Peel, CPA: Cash. 110;
Accounts Receivable . 120: Office Supplies, 130; Office Furniture, 140; Accounts Payable, 210; Utilities Payable, 220; Peel, Capital. 310; Peel, Withdrawals, 320; Service Revenue, 410; Salaries Expense, 510; Rent Expense, 520; Utilities Expense, 530. - Journalize the transactions, and then post the journal entries to the four-column accounts. Explanations are not required for the journal entries. Keep a running balance in each account. Assume the journal entries are recorded on page 10 of the journal.
- Prepare the trial balance as ol June 30, 2016.
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