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)
- Can you help me answer this question?arrow_forwardsd subject-Accountingarrow_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_forward
- Comprehensive Problem – Journalizing, Posting. Trial Balance Ulysses Dela Cruz established an enterprise he registered with the DTI under the name: The Storm Decorators, on May 1, 2020. During the month he completed the following transactions: 01 - Mr. Ulysses Dela Cruz transferred cash from a personal bank account to an account to be used for the business, P31,000. 02 - Purchased supplies for cash, P750. 02 - Paid P1,230 worth of local government taxes and business permits. 02 - Purchased tools on account from Tonyo General Merchandise, P4,600. 03 - Purchased a second-hand van from Bagyo Used Cars Inc. for P48,000, paying P8,00 cash and giving a note payable in 3 months for the remainder. 05 - Paid rent of the office space for the month, P2,250. 06 – Received cash for a job completed, P8,600. 08 – Purchased supplies on account from Tonyo General Merchandise, P2,450. 10 - Paid premiums on property insurance, P2,440. 12 - Paid in full creditor for the tools purchased on May 2. 14 - Paid…arrow_forwardTasks 8-9. Application. Prepare the journal entries of the transaction below and post them to the necessary ledger books. Write your answer on a separate sheet of paper. Olson Sala Company completed the following sales transactions during the month of June 2015. All credit sales have terms of 3/10, n/30 and all invoices are dated as at the transaction date. June 1 Olson Sala invested Php 52,000 of his funds in the business. 1 Sold merchandise on account to R. Bituin, Php 32,000. Invoice no. 377 Sold merchandise on account to A. Perdales, Php 54,000. Invoice no. 378 3 4 Sold merchandise for cash, Php 46,000. 7. Received payment from R. Bltuin less discounts. Received payment from A. Perdales less discounts. 9. Required: 1. Record the transactions in the general journal. 2. Post to the accounts receivable ledger. 3. Prepare a schedule of accounts receivable.arrow_forwardComprehensive review of the entire accounting cycle, Chapters 1-5 0 (175 min) Check Figure Net Income $5,388.44 P5-2C. From the following transactions as well as additional data, please complete the entire accounting cycle for Mike's Plumbing of Prince Albert. (Use a chart of accounts similar to the one in Problem P5-1A on page 228.) 2022 May 1 To open the business, Mike Quinlan invested $10,000 cash and $7,400 worth of plumbing equipment. 1 Paid rent for four months in advance, $1,980. 3 Purchased office equipment on account from MacKenzie Co., $3,800. 7 Bought plumbing supplies, $1,645. 8 Collected $3,600 for plumbing services provided. 9 Mike paid his home utility bill with a company cheque, $122. Billed Western Construction Co. for plumbing fees earned but not to be received until later, $9,600. 10 14 21 28 Advertising bill was received from ABCD Radio Co. but is not to be paid until next month, $420. Received cheque from Western Construction Co. in partial payment of transaction…arrow_forward
- The operations vice president of Security Home Bank has been interested in investigating the efficiency of the bank's operations. She has been particularly concerned about the costs of handling routine transactions at the bank and would like to compare these costs at the bank's various branches. If the branches with the most efficient operations can be identified, their methods can be studied and then replicated elsewhere. While the bank maintains meticulous records of wages and other costs, there has been no attempt thus far to show how those costs are related to the various services provided by the bank. The operations vice president has asked your help in conducting an activity-based costing study of bank operations. In particular, she would like to know the cost of opening an account, the cost of processing deposits and withdrawals, and the cost of processing other customer transactions. The Westfield branch of Security Home Bank has submitted the following cost data for last year:…arrow_forwardLooking for subsections 7 and 8 please!arrow_forwardSagararrow_forward
- Complete the General Journal for the following scenarioarrow_forwardIdentify the 3 issues with this General Journalarrow_forwardlorato’s trial balance as at 31st December 2020 Dr Cr Pula Pula Sales 800,000 Sales Returns 17,000 Purchases 400,000 Purchases Returns 21,000 Land and Buildings 320,000 Machinery 275,000 Motor vehicle 130,000 Furniture 65,000 Opening inventory 50,000 Accounts receivable 220,000 Accounts payable 276,000 Capital 650,000 Cash at Bank 30,000 DIPLOMA Sessional Structured Timed Assignment January - June BPA612 Principles of Accounting ©BOU 2023 Page 5 of 11 Cash in hand 3,000 Telephone 12,000 Electricity 15,000 Salaries and wages 170,000 Discounts receivable 3,500 Discounts Allowed 2,000 Interest receivable 9,000 Interest payable 12,000 General expenses 28,000 Insurance 6,000 Bad debts 1,000 Provision for bad and doubtful debts 4,500 Carriage outwards 3,000 Carriage inwards 5,000 1,764,000.0 1,764,000 Additional information a. Closing inventory P40,000 b. Motor vehicles purchased P10, 000 was included in Purchases by mistake. c. Electricity P1, 000 was owing at the end of the financial year.…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
- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:CengageFinancial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning