MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Accounting
12th Edition
ISBN: 9780134489728
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 2, Problem P2.32APGA
Journalizing transactions, posting
Learning Objectives 3, 4
3. Cash Balance $12,500
The trial balance of Shawn Merry, CPA, I5 dated March 31, 2018:
| SHAWN MERRY, CPA Trial Balance March 31, 2018 |
||
| Balance | ||
| Account Title | Debit | Credit |
| Cash | $11,000 | |
| 16,500 | ||
| Office Supplies | 400 | |
| Land | 30,000 | |
| Furniture | 0 | |
| Automobile | 0 | |
| Accounts Payable | $3,800 | |
| Unearned Revenue | 0 | |
| Merry, Capital | 52,300 | |
| Merry, Withdrawals | 0 | |
| Service Revenue | 82,000 | |
| Salaries Expense | 5,600 | |
| Rent Expense | 800 | |
| Total | $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 senrices 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 capital. 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 | Merry withdrew cash of $6,500. |
| 21 | Received $5,700 cash for consulting work completed. |
| 24 | Received $2,400 cash for accounting sen/ices to he completed next month. |
| 27 | Paid office rent, $600. |
| 28 | Paid employee salary, $1,700. |
Requirements
- Record the April transactions in the journal. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Furniture; Automobile; Accounts Payable; Unearned Revenue; Merry; Capital; Merry; Withdrawals; Sen/ice Revenue; Salaries Expense; and Rent Expense. lnclude an explanation for each entry.
- 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; Of?ce Supplies; 13; Land; 14; Furniture; 15; Automobile, 16; Accounts Payable; 21; Unearned Revenue; 22; Merry; Capital, 31; Merry; Withdrawals, 33; Service Revenue, 41; Salaries Expense, 51; and Rent Expense; 52.
- Post the joumal entries to four-column accounts in the ledger; using dates, account numbers; joumal references, and posting references. Assume the journal entries were recorded on page 5 of the journal.
- Prepare the trial balance of Shawn Merry; CPA; at April 30; 2018.
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Chapter 2 Solutions
MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Accounting
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