Concept explainers
Journalizing transactions, posting
Learning Objectives 3, 4
3. Service Revenue Balance $6,800
Theodore McMahon opened a law office on April 1, 2018. During the ?rst month of operations, the business completed the following transactions:
Apr. 1 | McMahon contributed $70,000 cash to the business, Theodore McMahon, Attorney. The business issued gave capital to McMahon. |
3 | Purchased office supplies, $1,100, and furniture, $1,300, on account. |
4 | Performed legal services for a client and received $2,000 cash. |
7 | Purchased a building with a market value of $150,000, and land with a market value of $30,000. The business paid $40,000 cash and signed a note payable to the bank for the remaining amount. |
11 | Prepared legal documents for a client on account, $400. |
15 | Paid assistant‘s semimonthly salary, $1,200. |
16 | Paid for the office supplies purchased on April 3 on account. |
18 | Received $2,700 cash for helping a client sell real estate. |
19 | Defended a client in court and billed the client for $1,700. |
25 | Received a bill for utilities, $650. The bill will be paid next month. |
28 | Received cash on account, $1,100. |
29 | Paid $3,600 cash for a 12-month insurance policy starting on May 1. |
29 | Paid assistant's semimonthly salary, $1,200. |
30 | Paid monthly rent expense, $2,100. |
30 | McMahon withdrew cash of $3,200. |
Requirements
1. Record each transaction in the journal, using the following account titles: Cash;
2. Open the following four~co|umn accounts including account numbers: Cash, 101; Accounts Receivable, 111; Of?ce Supplies; 121; Prepaid Insurance, 131; Land, 141; Building, 151; Furniture, 161; Accounts Payable, 201; Utilities Payable, 211; Notes Payable, 221; McMahon, Capital, 301; McMahon, Withdrawals, 311; Service Revenue, 411; Salaries Expense, 511; Rent Expense, 521; and Utilities
Expense, 531.
3. Post the journal entries to four−column accounts in the ledger, using dates, account numbers; joumal references, and posting references. Assume the joumal entries were recorded on page 1 of the journal.
4. Prepare the trial balance of Theodore McMahon, Attorney, at April 30, 2018.
Want to see the full answer?
Check out a sample textbook solutionChapter 2 Solutions
Horngren's Accounting (12th Edition)
- Student name: Student ID: The following transactions were completed during the month April .Invested $15,000 cash to start the agency.1 .Paid $600 cash for April office rent .2 .Purchased office equipment for $3,000 cash.3 Incurred $700 of advertising costs in the Chicago, .4 .on account case study 1 .Paid $800 cash for office supplies .5 Earned $11,000 for services rendered: $3,000 cash.6 is received from customers, and the balance of $8,000 .is billed to customers on account .Withdrew $500 cash for personal use.7 .Paid Chicago amount due in transaction (4).8 .Paid employees' salaries $2,200.9 Received $4,000 in cash from customers who have .10 .previously been billed in transaction (6) Instructions (a) Prepare a tabular analysis of the transactions 9 10 total Assets Cash+A\R+supplies +office equipment Liabilities A\P Owner Equity +capital drawing +revenues expensesarrow_forwardPrepare the necessary journal entries and statement of financial position for the month ending January 31, 2020arrow_forwardT Account entries for Simple Construction:Bob Simple graduated from the BCIT Construction Management Program and decided to start his own construction company. We will record various entries that might be made in a T account sheet in order to account for his second year of operations. At the end of the first year, his income statement and balance sheet havethe following values:Balance Sheet Entries for Last Year:Cash: 365,000Accounts Receivable: $17,000Materials Inventory: $2000Equipment: $15,000Accumulated Amortization: $500Accounts Payable: $22,000Bank Loan –Long Term: $10,000Dividend Payable: $35,000Interest Payable: $500Wages Payable: $5,000Common Stock: $250,000Retained Earnings: $76,000Income statement Final Entries for Last Year:Revenue: $145,000Materials Expense: $20,000Wages Expense: $10,000Amortization Expense: $500Rental Expense: $2,500Interest Expense: $1000Net Income: $111,000 Question 1a.Enter the relevant amounts in the T sheet to start the current year, and designate…arrow_forward
- Prepare the journal entries to record the transactions assume JE#, accounts, and dates.arrow_forwardLesson 6Posting the Journal Entry to the T-Accounts Learning Outcomes:Students are expected to:1. Post the journal entries into the T-accounts2. Determine the exact amount of the account On Jul1 1, 2016, Mr. Jan Jacob C. Solon opened the Hubbies Hair and Beauty Salon. The following transactions took place during the first month of operation:July 1 - Php 200,000.00 was invested by the owner.- Paid installation of utilities, Php 7,200.002 - Paid business permits and licenses to the government, Php 3,500.00Paid advance rent for the salon space, Php 10,000.003 - Purchased equipment on account amounting to Php 85,000.00 - Purchases salon supplies in cash, Php 25,000.005 - Served various customers and received cash, Php 9,600.007 - Rendered services, Php 12,000.00 and only 9,000 cash was received. The rest was on account.10 - Received cash, Php 8,200.00 from various customers.13 - Received Php 23,500.00 cash from various customers while Php 2,400.00 worth of services were…arrow_forwardInstruction: Use Journal Sheet (Yellow or White) for the Performance Tasks Performance Task No. 1- On Mar. 1, 2009, Samuel Barbo, a recent medical board topnotcher, started his medical practice. During the month of March, the following transactions were completed. Mar. 1 Barbo invested P42,500 personal funds in a new bank account in the name of Samuel Barbo, M.D. Acquired medical equipment costing P95,000 from Tambilo Medical Equipment Company, paying P15,000 cash, and financing the remainder issuing a P80,000 note payable. Paid rent for the month of March, P7,500. Acquired Medical Supplies from Suiza Medical Supply Company on account, P15,250. Received P18,450 in cash from patients for medical services rendered this week. 2 3 7 Paid Pablo Labs for preparing laboratory work on a patient, P1,800. Paid salaries of medical technician and receptionist, P9,600. 12 15 Billed patients P51,700 for services rendered. 17 Paid Suiza Medical Supply Company P3,750 on account. Paid telephone…arrow_forward
- (Learning Objective 4: Journalize transactions) After operating for several months,architect Donovan Freeman completed the following transactions during the latter part of July:Borrowed $64,000 from the bank, signing a note payable.Performed services on account for clients totaling $17,300.Received $16,000 cash on account from clients.Received and paid a utility bill of $1,800.Paid monthly salaries of $10,000 to employees.Jul 1522282931Journalize the transactions of Donovan Freeman, Architect. Include an explanation with eachjournal entry.arrow_forwardneed correct answer with correct and complete working thanksarrow_forwardconstruct the Journal Entry of the transaction: Date/# Account Title Debit Credit Oct-01 Garcia invested P30,000 cash to start his business. 2 Purchased medical Supplies on account, P10,000 2 Paid monthly office rent of P4,000. 3 Recorded P5,000 revenue for service rendered to patients: received cash of P2,000 and sent bills to patients for the remainder. 15 Borrowed P50,000 from the bank, signing a note payable 22 Performed service for patients on account, P3,600 30 Received cash from patients billed on September 3, P2,000 31 Received and paid a utility bill, P200 31 Paid monthly salary to nurses, P3,000 31 Paid interest expense of P200arrow_forward
- Show all steps of work Thanksarrow_forwardcan you show me the correct journal entries for these please, want to compare to double check my work.arrow_forwardPROBLEM 1: Bob Sample opened the Campus Laundromat on September 1, 2010. During the first month of operations the following transactions occurred. Sept 1. Bob invested $20,000 cash in the business 2. The company paid $1,000 cash for store rent for September 3. Purchased washers and dryers for $25,000, paying $10,000 in cash and signing a $15,000, 6-month, 12% note payable. 4 Paid $1,200 for a one-year accident insurance policy. 10. Received a bill from the Daily News for advertising the opening of the laundromat $200. 20. Bob withdrew $700 cash for personal use. 30. The company determined that cash receipts for laundry services for the month were $6,200. REQUIRED: • Journal Entry • Ledger • T- accounts (format provided)arrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeFinancial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
- Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning