Question

the first month of P2-32A P2-31A Journalizing transactions, posting journal entries to four-colu accounts, and preparing a trial balance Terrence Murphy opened a law office on January 1, 2018. During the first m operations, the business completed the following transactions: 0,160 Jan. 1 Murphy contributed $78,000 cash to the business, Terrence Muro Attorney. The business gave capital to Murphy. 3 Purchased office supplies. $600, and furniture, $1,700, on account 4 Performed legal services for a client and received $1,000 cash. 7 Purchased a building with a market value of $130,000, and land with market value of $25,000. The business paid $25,000 cash and signed note payable to the bank for the remaining amount. Prepared legal documents for a client on account, $400. 15 Paid assistant's semimonthly salary, S1, 120. 16 Paid for the office supplies purchased on January 3 on account. 18 Received $2,700 cash for helping a client sell real estate. 19 Defended a client in court and billed the client for $1,800. 25 Received a bill for utilities, $600. The bill will be paid next month. 29 Received cash on account, $1,500. 30 Paid $1,200 cash for a 12-month insurance policy starting on February 1. 30 Paid assistant's semimonthly salary, $1,120. 31 Paid monthly rent expense, $1,800. 31 Murphy withdrew cash of $2,200. Requirements 1. Record each transaction in the journal, using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Land; Building Furniture; Accounts Payable; Utilities Payable; Notes Payable; Murphy, Capital; Murphy, Withdrawals; Service Revenue; Salaries Expense; Rent Expense; and Utili- ties Expense. Explanations are not required. 2. Open the following four-column accounts including account numbers: Cash, 101; Accounts Receivable, 111; Office Supplies, 121; Prepaid Insurance, 131, Land, 141; Building, 151; Furniture, 161; Accounts Payable, 201: Utilities Payable, 211, Notes Payable, 221; Murphy, Capital, 301; Murphy, Withdrawals, 311; Service Revenue, 411; Salaries Expense, 511; Rent Expense, 521; and Utilities Expense, 531. 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 1 of the journal. 4. Prepare the trial balance of Terrence Murphy, Attorney, at January 31, 2018.

Answer 1

Journal Entries Date Account Title and Explaination Debit Credit Post. Ref. Jan.1 $ 78,000.00 Cash Murphy, Capital (To record Cash invested into business) 78,000.00 Jan.3 SA 600.00 1,700.00 Office Supplies Furniture Accounts Payable (To record Office Supplies and Furniture purchased on account) 2,300.00 Jan.4 1,000.00 Cash Service Revenue (To record Service provided for Cash) 1,000.00 Jan.7 130,000.00 25,000.00 $ Building Land Cash Notes Payable (To record Building and Land Purchased and part payment paid balance throught Note) 25,000.00 130,000.00

Jan.11 400.00 Accounts Receivable Service Revenue |(To record Service provided on account) 400.00 Jan.15 $ 1,120.00 Salaries Expense Cash (To record payment of Salaries) 1,120.00 Jan.16 600.00 Accounts Payable Cash (To record Payment of payables) 600.00 Jan. 18 2,700.00 Cash Service Revenue (To record service provided for cash) 2,700.00 Jan.19 1,800.00 Accounts Receivable Service Revenue (To record service provided on account) 1,800.00 Jan.25 600.00 Utilities Expense Utilities Payable (To record accrued utilities expense) 600.00

Jan.29 1,500.00 Cash Accounts Receivable (To record collection of receivables) 1,500.00 Jan. 30 1,200.00 Prepaid Insurance Cash (To record payment of one year insurance premium) 1,200.00 Jan.30 1,120.00 Salaries Expense Cash |(To record payment of salaries expense) 1,120.00 Jan.31 1,800.00 Rent Expense Cash (To record Payment of rent expense) 1,800.00 Jan.31 2,200.00 Murphy, Withdrawals Cash (To record Cash withdrawn for personal use) 2,200.00