P2-11B Hobson Nolan is a human resources professional wh HN HR Consulting. The c
ID: 2606198 • Letter: P
Question
P2-11B Hobson Nolan is a human resources professional wh HN HR Consulting. The company had the following balances in its general ledger at February 28, 2017 $3,500, Accounts Receivable $14,450, Equipment $15,100, Accounts Payable $18,750, and H. Nolan, C $14,300. The following events and transactions occurred during March 2017 o operates a consulting practice under the n ame Cash Borrowed $12,000 cash from the bank, signing a note payable. Paid $13,000 to creditors on account. Paid the monthly insurance premium of $145. Paid the monthly charge of $550 for keeping the company's website up to date. The company uses the website to advertise its services. Collected accounts receivable of $8,000. Paid an additional $5,000 to creditors on account. Miscellaneous expenses were paid in cash, $580. Consulting services provided in March were for $2,000 cash and $5,000 on account. Paid salaries, $1,650. Paid the bank $555 on the note payable, of which $55 is interest and $500 is a partial payment of the note. Paid March and April's rent, which totalled $1,900 ($950 per month). Withdrew $1,000 cash for personal use. Mar. 1 2 3 10 16 18 30 31 31 31 31 31 Instructions (a) Prepare journal entries to record each of the My..densactions. (b) Open the required ledger accounts for the treastuis that were journalized, and enter the February 28,2017, balances. Use T accounts. (c) Post the journal entries to the accounts in the ledger. (d) Prepare a trial balance as at the end of March. TAKING IT FURTHER Is the March 31 rent payment an asset or an expense? Explain.Explanation / Answer
a) Journal entries :
b & c) T-Accounts and postings :
d) Trial balance as at the end of March :
Date Accounts Titles Debit $ Credit $ Mar 1 Cash 12000 Note payable 12000 2 AP 13000 Cash 13000 3 Insurance exp. 145 Cash 145 10 Telephone (Internet) exp. 550 Cash 550 16 Cash 8000 AR 8000 18 AP 5000 Cash 5000 30 Miscel. expense 580 Cash 580 31 Cash 2000 AR 5000 Consultancy service revenue 7000 31 Salary expense 1650 Cash 1650 31 NP 500 Interest exp. 55 Cash 555 31 Rent Exp 950 Prepaid Rent 950 Cash 1900 31 Drawings 1000 Cash 1000Related Questions
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