Concept explainers
pj-.U A f«>ornalizing transactions, posting
f inhuliv Monroe opened u law office on January I. 2017. During the first month of opti.scions, the business completed the following transactions:
Jan 1 Monroe contributed $62,000 cash to the business, Timothy Monroe, Attorney i'business gave capital to Monroe.
< Purchased office supplies, $500, and furniture, $2,000, on account.
4 Performed legal services for a client and received $ 1,600 cash Purchased a building with a market value ol $/0,000, and land with a market value ol $29,000. The business paid $35,000 cash and signed a note payable to the bank for the remaining amount.
11 Prepared legal documents for a client on account, $300
15 Paid assistant’s semimonthly salary, $ 1.180
16 P3id for the office supplies purchased on January 3 on account 1S Received $2,000 cash for helping a client sell real estate.
19 Defended a client in court and billed the client for $1,400
25 Received a bill for utilities, $550 The bill will be paid next month.
29 Received cash on account, S700.
30 Paid $840 cash for a 12-month insurance policy starting on February 1.
30 Paid assistant's semimonthly salary, $1,180.
31 Paid monthly rent expense, $1,300.
31 Monroe withdrew cash of $2,900.
Requirements
- Record each transaction in the journal, using the following account tides: Cash;
Accounts Receivable ; Office Supplies; Prepaid Insurance; Furniture; Building; Land; Accounts Payable; Utilities Payable; Notes Payable; Monroe, Capital;
Monroe, Withdrawals; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required.
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Horngren's Accounting (11th Edition)
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