Q 30PGA-4
Question
Journalizing transactions, posting journal entries to T-accounts, and preparing a trial balance
Ann Simpson started her practice as a design consultant on September 1, 2018. During the first month of operations, the business completed the following transactions:
Sep. 1 Received \(48,000 cash and issued common stock to Simpson.
4 Purchased office supplies, \)1,200, and furniture, \(1,300, on account.
6 Performed services for a law firm and received \)1,900 cash.
7 Paid \(18,000 cash to acquire land to be used in operations.
10 Performed services for a hotel and received its promise to pay the \)1,200 within one week.
14 Paid for the furniture purchased on September 4 on account.
15 Paid assistant’s semimonthly salary, \(1,500.
17 Received cash on account, \)1,000.
20 Prepared a design for a school on account, \(650.
25 Received \)2,100 cash for design services to be performed in October.
28 Received \(2,900 cash for consulting with Plummer & Gordon.
29 Paid \)600 cash for a 12-month insurance policy starting on October 1.
30 Paid assistant’s semimonthly salary, \(1,500.
30 Paid monthly rent expense, \)600.
30 Received a bill for utilities, \(350. The bill will be paid next month.
30 Paid cash dividends of \)3,700.
Requirements 4. Prepare the trial balance of Ann Simpson, Designer, as of September 30, 2018.
Step-by-Step Solution
VerifiedThe trial balance is an accounting worksheet with debits and credits and the required trial balance is prepared.
The trial balance is an accounting worksheet that shows the balance of ledger accounts into debits and credits
| Ann Simpson | ||
| Trial Balance | ||
| September 30, 2018 | ||
Accounts Title | Debit ($) | Credit ($) |
|
|
|
Cash | $28,700 |
|
Accounts Receivables | $850 |
|
Office Supplies | $1,200 |
|
Prepaid Insurance | $600 |
|
Land | $18,000 |
|
Furniture | $1,300 |
|
Accounts Payable |
| $1,200 |
Utilities Payable |
| $350 |
Unearned Revenue |
| $2,100 |
Common Stock |
| $48,000 |
Dividends | $3,700 |
|
Service Revenue |
| $6,650 |
Salaries Expense | $3,000 |
|
Rent Expense | $600 |
|
Utilities Expense | $350 |
|
|
|
|
Total | $58,300 | $58,300 |