Q32PGA_4 - 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

The trial balance is an accounting worksheet and required trial balance is prepared in Step  2.

Step 1: Definition of Trial Balance

The trial balance is an accounting worksheet that shows the balance of ledger accounts into debits and credits.

Step 2: Preparing a trial balance

Shawn Merry
Trial balance
April 30, 2018
Account Title	Debit ($)	Credit ($)
Cash	$12,500
Accounts Receivables	$11,300
Office Supplies	$1,300
Land	$30,000
Furniture	$3,600
Automobile	$9,500
Accounts Payable		$5,300
Unearned Revenue		$2,400
Common Stock		$61,800
Dividends	$6,500
Service Revenue		$13,900
Salaries Expense	$7,300
Rent Expense	$1,400
Total	$83,400	$83,400