Chapter 2, Problem P2.31APGA

pj-.U A f«>ornalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance

f inhuliv Monroe opened u law office on January I. 2017. During the first month of _op_ti.scions, the business completed the following transactions:

Jan 1 Monroe contributed $62,000 cash to the business, Timothy Monroe, Attorney i'business gave capital to Monroe.

< Purchased office supplies, $500, and furniture, $2,000, on account.

4 Performed legal services for a client and received $ 1,600 cash Purchased a building with a market value ol $/0,000, and land with a market value ol $29,000. The business paid $35,000 cash and signed a note payable to the bank for the remaining amount.

11 Prepared legal documents for a client on account, $300

15 Paid assistant’s semimonthly salary, $ 1.180

16 P3id for the office supplies purchased on January 3 on account 1S Received $2,000 cash for helping a client sell real estate.

19 Defended a client in court and billed the client for $1,400

25 Received a bill for utilities, $550 The bill will be paid next month.

29 Received cash on account, S700.

30 Paid $840 cash for a 12-month insurance policy starting on February 1.

30 Paid assistant's semimonthly salary, $1,180.

31 Paid monthly rent expense, $1,300.

31 Monroe withdrew cash of $2,900.

Requirements

1. Record each transaction in the journal, using the following account tides: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Furniture; Building;
Land; Accounts Payable; Utilities Payable; Notes Payable; Monroe, Capital;

Monroe, Withdrawals; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required.

Open the following four-column accounts including account numbers: Cash.

101; Accounts Receivable, 111; Office Supplies, 121; Prepaid Insurance, 131; Furniture, 141; Building, 151; Land, 161; Accounts Payable, 201; Utilities Payable, 211; Notes Payable. 221; Monroe, Capital, 301; Monroe, Withdrawals, 311; Service Revenue, 411; Salaries Expense, 511; Rent Expense, 521; and Utilities Expense, 531.

Post the journal entries to four-column accounts in the ledger, using dates, account numbers, journal references, and posting references. Assume the journal entries were recorded on page 1 of the journal.

Prepare the trial balance of Timothy Monroe, Attorney, at January 31, 2017.