Chapter 2: Q32PGA_3 (page 104)

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
3. Post the journal entries to four-column accounts in the ledger, using dates, account numbers, journal references, and posting references. Assume the journal entries were recorded on page 5 of the journal.

Expert verified

Dividends are the profits that are distributed to the shareholders of the company and required accounts are prepared in step 2.

Step by step solution

The dividends are defined as the part of the profit distributed among the owners or the shareholders of the business.

Accounts Receivables Account Number - 12
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$16,500
Apr 8	Cash			$2,500	$14,000
19	Cash			$2,700	$11,300

Office Supplies Account Number - 13
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$400
Apr 18	Accounts Payable		$900		$1,300

Accounts Payable Account Number - 21
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
						$3,800
Apr 13	Cash		$3,000			$800
14	Furniture			$3,600		$4,400
18	Office Supplies			$900		$5,300

Unearned Revenue Account Number - 22
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
						$0
Apr 24	cash			$2,400		$2,400

Service Revenue Account Number - 41
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
						$8,200
Apr 21	Cash			$5,700		$13,900

Salaries Expense Account Number – 51
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$5,600
Apr 28	Cash		$1,700		$7,300

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