Q38PGB_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                                              17,000

Office Supplies                            1,200

Accounts Receivable                  10,500

Land                                              29,000

Furniture                                     0

Automobile                                 0

Accounts Payable                                                        3,800

Unearned Revenue                                                     0

Common Stock                                                             46,200

Dividends                                      0                 

Rent Expense                              1,000

Salaries Expense                        2,500

Service Revenue                                                          11,200

Total Balance                    \( 61,200                           61,200

 

 

During April, the business completed the following transactions: 

Apr. 4 Collected \)6,000 cash from a client on account. 

8 Performed tax services for a client on account, \(5,500. 

13 Paid \)3,300 on account. 

14 Purchased furniture on account, \(4,000. 

15 Menning contributed his personal automobile to the business in exchange for common stock. The automobile had a market value of \)11,500. 

18 Purchased office supplies on account, \(1,600. 

19 Received \)2,750 for tax services performed on April 8. 

20 Paid cash dividends of \(7,500. 

21 Received \)4,900 cash for consulting work completed. 

24 Received \(2,500 cash for accounting services to be completed next month. 

27 Paid office rent, \)900. 

28 Paid employee salary, $1,200.

 

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 revenue is the money received for goods or services and the required trial balance is prepared. 

Step 1: Definition of Unearned Revenue

Revenue is defined as the amount of money received by the business in exchange for services or goods.

Step 2: Preparation of Trial Balance

Shawn Merry
Trial balance
April 30, 2018
Account Title	Debit ($)	Credit ($)
Cash	$20,250
Accounts Receivables	$7,250
Office Supplies	$2,800
Land	$29,000
Furniture	$4,000
Automobile	$11,500
Accounts Payable		$5,600
Unearned Revenue		$2,500
Common Stock		$57,700
Dividends	$7,500
Service Revenue		$21,600
Salaries Expense	$3,700
Rent Expense	$1,900
Total	$87,900	$87,900