Question

Murray contributed $61,000 cash to the business, Taylor Murray, Attorney. The business issued common stock to Murray. Purchased office supplies, $800, and furniture, $1,300, on account. Performed legal services for a client and received $1,500 cash. Purchased a building with a market value of $90,000, and land with a market value of $30,000. The business paid $30.000 cash and signed a note payable to the bank for the remaining amount. Prepared legal documents for a client on account, $700. Paid assistant's semimonthly salary, $1,100. Paid for the office supplies purchased on January 3 on account. Received $2,600 cash for helping a client sell real estate. Defended a client in court and billed the client for $800. Received a bill for usties, $300. The bill will be paid next month. Received cash on account, $500. Paid $1.080 cash for a 12-month insurance policy starting on February 1. Paid assistant's semimonthly salary. $1,100. Paid monthly rent expense. $1,000. Paid cash dividends of $3.000

Answer 1

1. Journal entries:

Date	Particulars	L.F	Amount ($)	Amount ($)
1	Cash		61,000
	Common Stock			61,000
	(For common stock issued)
2	Office Supplies		800
	Furniture		1,300
	Accounts Payable			2,100
	(For office supplies and furniture purchased)
3	Cash		1,500
	Service Revenue			1,500
	(For legal services provided)
4	Building		90,000
	Land		30000
	Cash			30000
	Note Payable			90,000
	(For building and land purchased)
5	Account Receivable		700
	Services Revenue			700
	(For legal docs prepared)
6	Salary Expense		1,100
	Cash			1,100
	(For salary paid)
7	Accounts payable		800
	Cash			800
	(For paid for office supplies)
8	Cash		2600
	Service Revenue			2600
	(For cash received for helping client sell real estate)
9	Account Receivable		800
	Service Revenue			800
	(For billed client)
10	Utilities Expense		300
	Utilities Payable			300
	(For billed for utilities expense)
11	Cash		500
	Account Payable			500
	(For cash received)
12	Prepaid Insurance		1,080
	Cash			1,080
	(For insurance paid)
13	Salary Expense		1,100
	Cash			1,100
	(For salary paid)
14	Rent Expense		1,000
	Cash			1,000
	(For paid for rent expense)
15	Dividends		3,000
	Cash			3,000
	(For cash dividend paid)

2. Ledger accounts

Cash
Date	Debit	Credit	Balance
1	61,000		61,000
3	1,500		62,500
4		30,000	32,500
6		1,100	31,400
7		800	30,600
8	2,600		33,200
11	500		33,700
12		1,080	32,620
13		1,100	31,520
14		1,000	30,520
15		3,000	27,520
Office Supplies
Date	Debit	Credit	Balance
2	800		800
Common Stock
Date	Debit	Credit	Balance
1		61,000	61,000
Furniture
Date	Debit	Credit	Balance
2	1,300		1,300
Accounts Payable
Date	Debit	Credit	Balance
2		2,100	2,100
7	800		1,300
11		500	1,800
Service Revenue
Date	Debit	Credit	Balance
3		1,500	1,500
5		700	2,200
8		2600	4,800
9		800	5,600
Building
Date	Debit	Credit	Balance
4	90,000		90,000
Land
Date	Debit	Credit	Balance
4	30,000		30,000
Note Payable
Date	Debit	Credit	Balance
4		90,000	90,000
Account Receivable
Date	Debit	Credit	Balance
5	700		700
9	800		1,500
Salary Expense
Date	Debit	Credit	Balance
6	1,100		1,100
13	1,100		2,200
Utilities Expense
Date	Debit	Credit	Balance
10	300		300
Utilities payable
Date	Debit	Credit	Balance
10		300	300
Prepaid Insurance
Date	Debit	Credit	Balance
12	1,080		1,080
Rent Expense
Date	Debit	Credit	Balance
14	1,000		1,000
Dividends
Date	Debit	Credit	Balance
15	3,000		3,000

3. Trial Balance

Taylor Murray
Trial Balance
January 31, 2018
	Debit	Credit
Cash	27,520
Account Receivable	1,500
Office Supplies	800
Prepaid insurance	1,080
Furnitire	1,300
Building	90,000
Land	30,000
Accounts Payable		1800
Note Payable		90000
Utilities payable		300
Common Stock		61000
Dividends	3,000
Service Revenue		5600
Salary Expense	2,200
Utilities Expense	300
Rent Expense	1,000
Total	158,700	158,700