Chapter 2, Problem P2.32APGA

Journalizing transactions, posting journal entries to four-column accounts and preparing a trial balance
Learning Objectives 3, 4
3. Cash Balance $12,500
The trial balance of Shawn Merry, CPA, I5 dated March 31, 2018:

SHAWN MERRY, CPA Trial Balance March 31, 2018
Balance
Account Title	Debit	Credit
Cash	$11,000
Accounts Receivable	16,500
Office Supplies	400
Land	30,000
Furniture	0
Automobile	0
Accounts Payable		$3,800
Unearned Revenue		0
Merry, Capital		52,300
Merry, Withdrawals	0
Service Revenue		82,000
Salaries Expense	5,600
Rent Expense	800
Total	$64,300	$64,300

During April, the business completed the following transactions:

Apr.4	Collected $2,500 cash from a client on account.
8	Performed tax senrices for a client on account, $5,400.
13	Paid $3,000 on account.
14	Purchased furniture on account, $3,600.
15	Merry contributed his personal automobile to the business in exchange for capital. The automobile had a market value of $9,500.
18	Purchased office supplies on account, $900.
19	Received $2,700 for tax services performed on April 8.
20	Merry withdrew cash of $6,500.
21	Received $5,700 cash for consulting work completed.
24	Received $2,400 cash for accounting sen/ices to he completed next month.
27	Paid office rent, $600.
28	Paid employee salary, $1,700.

Requirements

1. Record the April transactions in the journal. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Furniture; Automobile; Accounts Payable; Unearned Revenue; Merry; Capital; Merry; Withdrawals; Sen/ice Revenue; Salaries Expense; and Rent Expense. lnclude an explanation for each entry.
2. Open the four-column ledger accounts listed in the trial balance; together with their balances as of March 31. Use the following account numbers: Cash; 11; Accounts Receivable, 12; Of?ce Supplies; 13; Land; 14; Furniture; 15; Automobile, 16; Accounts Payable; 21; Unearned Revenue; 22; Merry; Capital, 31; Merry; Withdrawals, 33; Service Revenue, 41; Salaries Expense, 51; and Rent Expense; 52.
3. Post the joumal entries to four-column accounts in the ledger; using dates, account numbers; joumal references, and posting references. Assume the journal entries were recorded on page 5 of the journal.
4. Prepare the trial balance of Shawn Merry; CPA; at April 30; 2018.