24E_1 - Horngren'S Financial And Managerial Accounting

Question

Question: Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance The following transactions occurred during the month for Teresa Parker, CPA: 

Jun. 1 Parker opened an accounting firm by contributing \(13,200 cash and office furniture with a fair market value of \)5,300 in exchange for common stock. 

5 Paid monthly rent of \(1,300. 

9 Purchased office supplies on account, \)600. 

14 Paid employee’s salary, \(1,900. 

18 Received a bill for utilities to be paid next month, \)370. 

21 Paid \(500 of the accounts payable created on June 9. 

25 Performed accounting services on account, \)5,700. 

28 Paid cash dividends of $6,700

Requirements 1. Open the following four-column accounts of Teresa Parker, CPA: Cash, 110; Accounts Receivable, 120; Office Supplies, 130; Office Furniture, 140; Accounts Payable, 210; Utilities Payable, 220; Common Stock, 310; Dividends, 320; Service Revenue, 410; Salaries Expense, 510; Rent Expense, 520; and Utilities Expense, 530.

Step-by-Step Solution

Answer

T-account are opened in step 2.

Step-by-Step Solution Step 1: Definition of Common Stock

The common stock is defined as the financial instrument which represents the ownership of the company

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

 

Office Furniture     Account Number - 140
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

 

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

 

Utilities Payable                                                                                                         Account Number - 220
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

 

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

 

DividendsAccount Number - 320
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

 

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

 

 

 

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

 

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

 

 

Utilities Expense      Account Number - 530
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit