Q32PGA_2 - Horngren'S Financial And Managerial Accounting

Question

Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance 

The trial balance of Shawn Merry, CPA, is dated March 31, 2018: During April, the business completed the following transactions: 

Cash                                              11,000

Office Supplies                            400

Accounts Receivable                  16,500

Land                                              30,000

Furniture                                     0

Automobile                                 0

Accounts Payable                                                        3,800

Unearned Revenue                                                     0

Common Stock                                                             52,300

Dividends                                      0                 

Rent Expense                              800

Salaries Expense                        5,600

Service Revenue                                                          8,200

Total Balance                    \( 64,300                           64,300

During April, the business completed the following transactions: 

Apr. 4 Collected \)2,500 cash from a client on account. 

8 Performed tax services for a client on account, \(5,400. 

13 Paid \)3,000 on account. 

14 Purchased furniture on account, \(3,600. 

15 Merry contributed his personal automobile to the business in exchange for common stock. The automobile had a market value of \)9,500. 

18 Purchased office supplies on account, \(900. 

19 Received \)2,700 for tax services performed on April 8. 

20 Paid cash dividends of \(6,500. 

21 Received \)5,700 cash for consulting work completed. 

24 Received \(2,400 cash for accounting services to be completed next month. 

27 Paid office rent, \)600. 

28 Paid employee salary, $1,700.

Requirements 

2. Open the four-column ledger accounts listed in the trial balance, together with their balances as of March 31. Use the following account numbers: Cash, 11; Accounts Receivable, 12; Office Supplies, 13; Land, 14; Furniture, 15; Automobile, 16; Accounts Payable, 21; Unearned Revenue, 22; Common Stock, 31; Dividends, 33; Service Revenue, 41; Salaries Expense, 51; and Rent Expense, 52

Step-by-Step Solution

Answer

Office supplies are assets that are used in office and required four-column accounts are prepared in step 2.

Step 1 Definition of Office Supplies

Office Supplies are defined as the assets which are used up or get exhausted or get consumed in the office premises of the business.

Step 2 Opening Four-Column Accounts

Cash                                                                                                                                  Account Number – 11
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$11,000

Accounts Receivables                                                                                                   Account Number - 12
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$16,500

Office Supplies                                                                                                           Account Number - 13
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$400

Land                                                                                                                          Account Number - 14
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$30,000

Furniture                                                                                                                    Account Number - 15
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$0

Automobile                                                                                                                  Account Number – 16
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$0

Accounts Payable                                                                                                                       Account Number - 21
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
						$3,800

Unearned Revenue                                                                                                       Account Number - 22
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
						$0

Common Stock                                                                                                                Account Number – 31
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
						$52,300

Dividends                                                                                                                         Account Number – 33
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$0

Service Revenue                                                                                                          Account Number - 41
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
						$8,200

Salaries Expense                                                                                                             Account Number – 51
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$5,600

Rent Expense                                                                                                                   Account Number - 52
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$800