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

01

Definition of Office Supplies

Office Supplies are defined as the assets which are used up or get exhausted or get consumed in the office premises of the business.

02

Opening Four-Column Accounts

Cash Account Number – 11
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$11,000

Accounts Receivables Account Number - 12
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$16,500

Office Supplies Account Number - 13
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$400

Land Account Number - 14
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$30,000

Furniture Account Number - 15
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$0

Automobile Account Number – 16
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$0

Accounts Payable Account Number - 21
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
						$3,800

Unearned Revenue Account Number - 22
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
						$0

Common Stock Account Number – 31
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
						$52,300

Dividends Account Number – 33
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$0

Service Revenue Account Number - 41
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
						$8,200

Salaries Expense Account Number – 51
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$5,600

Rent Expense Account Number - 52
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$800

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