19E_1 - Horngren'S Financial And Managerial Accounting

Question

Question: The following transactions occurred for Wilke Technology Solutions: 

May 1 The business received cash of \(105,000 and issued common stock to Zoe Wilke. 

2 Purchased office supplies on account, \)550. 

4 Paid \(57,000 cash for building and land. The building had a fair market value of \)45,000. 

6 Performed services for customers and received cash, \(3,600. 

9 Paid \)350 on accounts payable. 

17 Performed services for customers on account, \(3,500. 

19 Paid rent expense for the month, \)1,200. 

20 Received \(1,500 from customers for services to be performed next month. 

21 Paid \)900 for advertising in next month’s IT Technology magazine. 

23 Received \(3,100 cash on account from a customer. 

31 Incurred and paid salaries, \)1,700

Posting journal entries to four-column accounts 

Requirements 1. Open four-column accounts using the following account numbers: Cash, 110; Accounts Receivable, 120; Office Supplies, 130; Prepaid Advertising, 140; Land, 150; Building, 160; Accounts Payable, 210; Unearned Revenue, 220; Common Stock, 310; Service Revenue, 410; Rent Expense, 510; and Salaries Expense, 520.

Step-by-Step Solution

Answer

Accounts receivables are the amount owed to the business and required accounts are opened in step 2.

Step-by-Step Solution Step 1: Definition of Accounts Receivables

Accounts receivables are defined as the balance sheet item which represents the amount owed to the business by the clients or customers

Step 2: Opening of Accounts

Cash                                                                                                                               Account Number - 110
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

 

Accounts Receivables                                                                                                   Account Number - 120
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

 

Office Supplies                                                                                                              Account Number - 130
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

 

Prepaid Advertising                                                                                                            Account Number - 140
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

 

Land                                                                                                               Account Number - 150
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

 

Building                                                                                                           Account Number - 160
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

 

Accounts Payable                                                                                                                Account Number - 210
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

 

Unearned Revenue                                                                                                                         Account Number - 220
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

 

Common Stock                                                                                                             Account Number - 310
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

 

 

Service Revenue                                                                                                             Account Number - 410
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

 

Rent Expense                                                                                                                   Account Number - 510
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

 

 

Salaries Expense                                                                                                             Account Number - 520
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit