Chapter 2, Problem P2.37BPGB

Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance
Learning Objectives 3, 4
3. Service Revenue Balance $6,800
Theodore McMahon opened a law office on April 1, 2018. During the ?rst month of operations, the business completed the following transactions:

Apr. 1	McMahon contributed $70,000 cash to the business, Theodore McMahon, Attorney. The business issued gave capital to McMahon.
3	Purchased office supplies, $1,100, and furniture, $1,300, on account.
4	Performed legal services for a client and received $2,000 cash.
7	Purchased a building with a market value of $150,000, and land with a market value of $30,000. The business paid $40,000 cash and signed a note payable to the bank for the remaining amount.
11	Prepared legal documents for a client on account, $400.
15	Paid assistant‘s semimonthly salary, $1,200.
16	Paid for the office supplies purchased on April 3 on account.
18	Received $2,700 cash for helping a client sell real estate.
19	Defended a client in court and billed the client for $1,700.
25	Received a bill for utilities, $650. The bill will be paid next month.
28	Received cash on account, $1,100.
29	Paid $3,600 cash for a 12-month insurance policy starting on May 1.
29	Paid assistant's semimonthly salary, $1,200.
30	Paid monthly rent expense, $2,100.
30	McMahon withdrew cash of $3,200.

Requirements

1. Record each transaction in the journal, using the following account titles: Cash; Accounts Receivable, Office Supplies; Prepaid Insurance; Land; Building; Fumiture; Accounts Payable, Utilities Payable, Notes Payable; McMahon, Capital; McMahon, Withdrawals; Service Revenue, Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required
2. Open the following four~co|umn accounts including account numbers: Cash, 101; Accounts Receivable, 111; Of?ce Supplies; 121; Prepaid Insurance, 131; Land, 141; Building, 151; Furniture, 161; Accounts Payable, 201; Utilities Payable, 211; Notes Payable, 221; McMahon, Capital, 301; McMahon, Withdrawals, 311; Service Revenue, 411; Salaries Expense, 511; Rent Expense, 521; and Utilities
Expense, 531.

3. Post the journal entries to four−column accounts in the ledger, using dates, account numbers; joumal references, and posting references. Assume the joumal entries were recorded on page 1 of the journal.
4. Prepare the trial balance of Theodore McMahon, Attorney, at April 30, 2018.