Question

Journalize transactions, post, and prepare a trial balance. (LO 2, 4, 6, 7) 

P2-2A Lena Fohn is a licensed accountant. During the first month of operations of her business, Lena Fohn, AG, the following events and transactions occurred. 

May 1 Shareholders invested €20,000 cash in exchange for ordinary shares. 

2 Hired a secretary-receptionist at a salary of €2,000 per month. 

3 Purchased €1,500 of supplies on account from Hartig Supply Company. 

7 Paid office rent of €900 cash for the month. 

11 Completed a tax assignment and billed client €2,800 for services performed. 

12 Received €3,500 advance on a management consulting engagement. 

17 Received cash of €1,200 for services performed for Lucille Co. 

31 Paid secretary-receptionist €2,000 salary for the month. 

31 Paid 40% of balance due Hartig Supply Company. 

Lena uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 311 Share Capital - Ordinary, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.

Answer 1

Answer 2