Transaction Analysis and Trial Balance Make T-accounts for the following account

Question

Transaction Analysis and Trial Balance Make T-accounts for the following accounts that appear in the general ledger of Mathew Thomas an attorney: Cash: Accounts Receivable: Office Equipment: Legal Database Subscription: Accounts Payable: Common Stock: Dividends: Legal Fees Earned: Salaries Expense: Rent Expense: and Utilities Expense. Using the accounting equation, record each of the transactions in columnar format. Prepare journal entries and record the following October transactions in the T-accounts and key all entries with the number identifying the transaction. Determine the balance for each account and prepare a trial balance as of October 31 Oct 1 Thomas started his lew practice by concibuting $17,500 cash to the business on October 1: he received common stock for his investment Purchased office equipment on accoung $14,000 3 Paid office rent for October, $700 4 Paid $11,600 to access online legal dacabase for two years 5 Billed clients for services rendered, $11,300 Made $6,000 payment on account for the equipment purchased on October 2 Paid legal assistant's salary, $3,100 8 Collected $9,400 from clients previously billed for services 9 Received invoice for October utlities, $180 it will be paid in November. 0 The firm paid stockholders $1,500 cash as a dividend.

Explanation / Answer

Cash Accounts Receivable Database Subscription Office Equipment = Accounts Payable Common Stock Retaned earnings 1 17500 17500 2 14000 14000 3 -700 4 -11600 11600 5 11300 6 -6000 -6000 7 -3100 8 9400 -9400 9 180 10 -1500 -1500 General Journal Date Description Debit Credit 1) 1-Oct Cash A/c 17500 To Common Stock 17500 2) 2-Oct Office Equipment 14000 To Accounts Payable 14000 3) 3-Oct Office Rent 700 To Cash 700 4) 4-Oct Legal Database 11600 To Cash 11600 5) 5-Oct Accounts Receivable 11300 To Legal Fees earned 11300 6) 6-Oct Accounts Payable 6000 To Cash 6000 7) 7-Oct Salary Expense 3100 To Cash 3100 8) 8-Oct Cash 9400 To accounts receivable 9400 9) 9-Oct Utilities Expense 180 To accounts payable 180 10) 10-Oct Dividend 1500 To Cash 1500 Cash 1 17500 3 700 4 11600 6 6000 7 3100 8 9400 10 1500 Bal 4000 Accounts Receivable 5 11300 8 9400 Bal 1900 Office Equipment 2 14000 Bal 14000 Legal Fees Earned 5 11300 Bal Salaries Expense 7 3100 Bal 3100 Rent Expense 3 700 Bal 700 Utilities Expense 9 180 Bal Matthew Thomas Trial Balance October'31 Debit Credit Cash 4000 Accounts Receivable 1900 Office Equipment 14000 Legal Database Subscription 11600 Accounts Payable 8180 Common Stock 17500 Dividends 1500 Legal Fees Earned 11300 Salaries Expense 3100 Rent Expense 700 Utilities Expense 180 Totals 36980 36980

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