Question: The following transactions occurred for Wilke Technology Solutions:
May 1 The business received cash of $105,000 and issued common stock to Zoe Wilke.
2 Purchased office supplies on account, $550.
4 Paid $57,000 cash for building and land. The building had a fair market value of $45,000.
6 Performed services for customers and received cash, $3,600.
9 Paid $350 on accounts payable.
17 Performed services for customers on account, $3,500.
19 Paid rent expense for the month, $1,200.
20 Received $1,500 from customers for services to be performed next month.
21 Paid $900 for advertising in next month’s IT Technology magazine.
23 Received $3,100 cash on account from a customer.
31 Incurred and paid salaries, $1,700
Posting journal entries to four-column accounts
Requirements 2. Post the journal entries to the four-column accounts, and determine the balance in the account after each transaction. Assume that the journal entries were recorded on page 10 of the journal. Make sure to complete the Post. Ref. columns in the journal and ledger.

Step by step solution

Chapter 2: 19E_2 (page 95)

Expert verified

Accounts payables are amounts owed to suppliers and required accounts are prepared in step 2.

Unearned Revenue Account Number – 220

Accounts payables are defined as the amount of money a company owes to the supplier of goods or services.

Accounts Receivables Account Number – 120
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
May 17	Service Revenue		$3,500		$3,500
23	Cash			$3,100	$400

Office Supplies Account Number – 130
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
May 2	Accounts Payable		$550		$550

Prepaid Advertising Account Number – 140
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
21	Cash		$900		$900

Accounts Payable Account Number - 210
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
May 2	Office Supplies			$550		$550

Service Revenue Account Number – 410
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
May 6	Cash			$3,600		$3,600
17	Accounts Receivables			$3,500		$7,100

Salaries Expense Account Number – 520
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
May 31	Cash		$1,700		$1,700

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