Explain what a transaction is; analyze the impact of business transactions on ac
ID: 2578634 • Letter: E
Question
Explain what a transaction is; analyze the impact of business transactions on accounts; record [journalize and post] transactions in the books; construct and use a trial balance) You are a Certified Public Accountant “Student’s name, Certified Public Accountant”, and operate as a professional corporation (P.C.). Your business completed these transactions during the first part of August 2016:
Aug. 1 The P.C. received $20,000 cash from you, and issued you common stock.
2 Paid monthly office rent, $800
3 Purchased a computer on account for $2,500, with the computer expected to remain in service for five years.
4 Purchased office furniture for cash, $5,000, with the furniture projected to last for five years.
5 Purchased supplies on account, $800.
9 Performed tax service for a client on account, $1,500.
15 Received and paid utility expenses, $350.
20 Preformed consulting services and received cash for the full amount of $1,800.
LO USING EXCEL:
1. Journalize the transaction. Explanations are not required.
2. Post to the T-accounts. Key all items by date and determine the ending balance in each account. Denote an account balance on August 20, 2016, as Bal.
3. Prepare a trial balance at August 20, 2016.
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Explain what a transaction is; analyze the impact of business transactions on accounts; record [journalize and post] transactions in the books; construct and use a trial balance) You are a Certified Public Accountant “Student’s name, Certified Public Accountant”, and operate as a professional corporation (P.C.). Your business completed these transactions during the first part of August 2016:
Explanation / Answer
Student's Name, Certified Public Accountant, P.C. General Journal Date Journal Amount (DR) Amount (CR) 1-Aug Cash $ 20,000.00 To Common Stock $ 20,000.00 (Being amount of common stock issued) 2-Aug Office Rent $ 800.00 To Cash $ 800.00 (Being amount paid for monthly office rent) 3-Aug Computer $ 2,500.00 To Accounts Payable $ 2,500.00 (Being amount of computer purchased on account) 4-Aug Office Furniture $ 5,000.00 To Cash $ 5,000.00 (Being amount of office furniture purchased 5-Aug supplies $ 800.00 To Accounts Payable $ 800.00 (Being amount of supplies purchased) 9-Aug Accounts Receivable $ 1,500.00 To Service Revenue $ 1,500.00 (Being amount of tax service performed on account 15-Aug Utility Expenses $ 350.00 To Cash $ 350.00 (Being amount of Utility Expenses 20-Aug Cash $ 1,800.00 To Service Revenue $ 1,800.00 (Being amount of consulting service performed) Cash A/c Date Particular Amount Date Particular Amount 1-Aug To common Stock $ 20,000.00 2-Aug By Rent $ 800.00 20-Aug To Service revenue $ 1,800.00 4-Aug By Office furniture $ 5,000.00 15-Aug By Utility Exp $ 350.00 20-Aug By Bal c/d $ 15,650.00 Total $ 21,800.00 $ 21,800.00 Rent A/c Date Particular Amount Date Particular Amount 2-Aug To Cash $ 800.00 20-Aug By Bal C/d $ 800.00 Total $ 800.00 $ 800.00 Computer A/c Date Particular Amount Date Particular Amount 3-Aug To Accounts Pahyable $ 2,500.00 20-Aug By Bal C/d $ 2,500.00 Total $ 2,500.00 $ 2,500.00 Furniture A/c Date Particular Amount Date Particular Amount 4-Aug To Cash $ 5,000.00 20-Aug By Bal C/d $ 5,000.00 Total $ 5,000.00 $ 5,000.00 Supplies A/c Date Particular Amount Date Particular Amount 5-Aug To Accounts Payable $ 800.00 20-Aug By Bal C/d $ 800.00 Total $ 800.00 $ 800.00 Service revenue Date Particular Amount Date Particular Amount 20-Aug To Bal C/d $ 3,300.00 9-Aug By Accounts Receivable $ 1,500.00 By Cash $ 1,800.00 Total $ 3,300.00 $ 3,300.00 Utility Expenses Date Particular Amount Date Particular Amount 15-Aug To Cash $ 350.00 20-Aug By Bal c/d $ 350.00 Total $ 350.00 $ 350.00 Common Stock Date Particular Amount Date Particular Amount 20-Aug To Bal C/d $ 20,000.00 1-Aug By Cash $ 20,000.00 Total $ 20,000.00 $ 20,000.00 Accounts Payable Date Particular Amount Date Particular Amount 20-Aug To Bal C/d $ 3,300.00 3-Aug By Computer $ 2,500.00 5-Aug By Supplies $ 800.00 Total $ 3,300.00 $ 3,300.00 Accounts Receivable Date Particular Amount Date Particular Amount 9-Aug To Service Revenue $ 1,500.00 20-Aug By Bal C/d $ 1,500.00 Total $ 1,500.00 $ 1,500.00 Student Name,Certified Public Accountant ,P.C Trial Balnce at August 20th 2016 Account Head Debit Credit Cash $ 15,650.00 Accounts receivable $ 1,500.00 Supplies $ 800.00 Computer $ 2,500.00 Furniture $ 5,000.00 Accounts payable $ 3,300.00 Common Stock $ 20,000.00 Service Revenue $ 3,300.00 Rent expenses $ 800.00 Utility Expenses $ 350.00 Total $ 26,600.00 $ 26,600.00
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