Recording Business Transactions 101 Journalizing transactions, posting journal e

Question

Recording Business Transactions 101 Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance P2-32A Learning Objectives 3, 4 rial balance of Shawn Merry, CPA, is dated March 31, 2018 3. Cash Balance $12,500 The SHAWN MERRY, CPA Trial Balance March 31, 2018 Account Title Debit 5 11,000 16,500 Credit Accounts Receivable Office Supplies Land Furniture 400 30,000 Accounts Payable Unearned Revenue Merry, Capital Merry. Withdrawals Service Revenue Salaries Expense Rent Expense Total $ 3,800 52,300 8,200 5,600 800 64,300 64,300 During April, the business completed the following transactions: Apr. 4 Collected $2,500 cash from a client on account 8 13 14 15 Performed tax services for a client on account, $5,400 Paid $3,000 on account. Purchased furniture on account, $3,600 Merry contributed his personal automobile to the business in exchange 18 19 20 21 24 for capital. The automobile had a market value of $9,500. Purchased office supplies on account, $900 Received $2,700 for tax services performed on April 8 Merry withdrew cash of $6,500. Received $5,700 cash for consulting work completed. Received $2.400 cash for accounting services to be completed next month. Paid office rent, $600. Paid employee salary, $1,700. 27 28

Explanation / Answer

Part 1 : Recording of April transactions in the Journal

Journal Entries (Amount in $)

Part 2 : Posting of Journal entries to Ledger (Amount in $)

Cash, 11   

Accounts Receivable, 12 (Amount in $)

Office Supplies, 13 (Amount in $)

Land, 14   (Amount in $)

Furniture, 15 (Amount in $)

Automobile, 16 (Amount in $)

Accounts Payable, 21 (Amount in $)

Unearned Revenue, 22 (Amount in $)

Merry, Capital, 31 (Amount in $)

Merry, Withdrawals, 33 (Amount in $)

Service Revenue, 41 (Amount in $)

Salaries Expense, 51 (Amount in $)

Rent Expense, 52 (Amount in $)

Part 3 : Trial Balance as on April 30, 2018 (Amount in $)

Date Account Titles Debit Credit Apr. 4 Cash 2,500 Accounts Receivable 2,500 Apr. 8 Accounts Receivable 5,400 Service Revenue 5,400 Apr. 13 Accounts Payable 3,000 Cash 3,000 Apr. 14 Furniture 3,600 Accounts Payable 3,600 Apr. 15 Automobile 9,500 Merry, Capital 9,500 Apr. 18 Office Supplies 900 Accounts Payable 900 Apr. 19 Cash 2,700 Accounts Receivable 2,700 Apr. 20 Merry, WIthdrawals 6,500 Cash 6,500 Apr. 21 Cash 5,700 Service Revenue 5,700 Apr. 24 Cash 2,400 Unearned Revenue 2,400 Apr. 27 Rent expense 600 Cash 600 Apr. 28 Salaries expense 1,700 Cash 1,700

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