Q 36PGB-4
Question
Journalizing transactions, posting journal entries to T-accounts, and preparing a trial balance
Beth Stewart started her practice as a design consultant on November 1, 2018. During the first month of operations, the business completed the following transactions:
Nov. 1 Received \(41,000 cash and issued common stock to Stewart.
4 Purchased office supplies, \)1,200, and furniture, \(2,300, on account.
6 Performed services for a law firm and received \)2,100 cash.
7 Paid \(27,000 cash to acquire land to be used in operations.
10 Performed services for a hotel and received its promise to pay the \)800 within one week.
14 Paid for the furniture purchased on November 4 on account.
15 Paid assistant’s semimonthly salary, \(1,470.
17 Received cash on account, \)500.
20 Prepared a design for a school on account, \(680.
25 Received \)1,900 cash for design services to be performed in December.
28 Received \(3,100 cash for consulting with Plummer & Gordon.
29 Paid \)840 cash for a 12-month insurance policy starting on December 1.
30 Paid assistant’s semimonthly salary, \(1,470. 30 Paid monthly rent expense, \)650.
30 Received a bill for utilities, \(650. The bill will be paid next month.
30 Paid cash dividends of \)2,800.b
Requirements 4. Prepare the trial balance of Beth Stewart, Designer, as of November 30, 2018.
Step-by-Step Solution
VerifiedCommon stock are the ownership stocks of the business and the required trial balance is prepared in step 2.
The Common stocks are defined as the financial instrument which represents the ownership of the company
| Beth Stewart | ||
| Trial Balance | ||
| November 30, 2018 | ||
Accounts Title | Debit ($) | Credit ($) |
|
|
|
Cash | $12,070 |
|
Accounts Receivables | $980 |
|
Office Supplies | $1,200 |
|
Prepaid Insurance | $840 |
|
Land | $27,000 |
|
Furniture | $2,300 |
|
Accounts Payable |
| $1,200 |
Utilities Payable |
| $650 |
Unearned Revenue |
| $1,900 |
Common Stock |
| $41,000 |
Dividends | $2,800 |
|
Service Revenue |
| $6,680 |
Salaries Expense | $2,940 |
|
Rent Expense | $650 |
|
Utilities Expense | $650 |
|
|
|
|
Total | $51,430 | $51,430 |