Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
5th Edition
ISBN: 9780134078939
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 2, Problem 2.32AP
Journalizing transactions, posting
The trial balance of Steve Mentz, CPA, is dated March 31, 2017:
During April, the business completed the following transactions:
Apr. 4 | Collected $ 1,000 cash from a client on account. |
8 | Performed tax services for a client on account, $5,800. |
13 | Paid $1,500 on account. |
14 | Purchased furniture on account, $4,600. |
15 | Mentz contributed his persona l automobile to the business in exchange for common stock. The automobile had a market value of $8,000. |
18 | Purchased office supplies on account, $500. |
19 | Received $2,900 for tax services performed on April 8. |
20 | Paid cash dividends of $8,000. |
21 | Received $5,400 cash for consulting work completed. |
24 | Received $1,200 cash for accounting services to be completed next month. |
27 | Paid office rent, $700. |
28 | Paid employee salary, $1,600. |
Requirements
- 1. Record the April transactions in the journal. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Furniture; Automobile; Land; Accounts Payable; Unearned Revenue; Common Stock; Dividends; Service Revenue; Salaries Expense; and Rent Expense. Include an explanation for each entry.
- 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; Furniture, 14; Automobile, 15; Land, 16; Accounts Payable, 21; Unearned Revenue, 22; Common Stock, 31;
- 1. Dividends, 33; Service Revenue, 41; Salaries Expense, 51; and Rent Expense, 52.
- 2. 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.
- 3. Prepare the trial balance of Steve Mentz, CPA, at April 30, 2017.
3. Cash Balance $16,700
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Chapter 2 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
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