Question

The consulting firm of Martin and Associates uses the accounts listed below. Record the opening balances as of December 1, 2019 on the normal balance side of the following T-Accounts. List of accounts with their opening balances:

Cash $ 5,300 Fees Income -0- Accounts Receivable 8,300 Rent Expense -0- Office Equipment 7,800 Utilities Expense -0- Accounts Payable 5,800 Salaries Expense -0- Joan Martin, Capital 15,600 Joan Martin, Drawing -0-

The firm has the following transactions during the month of December 2019. Record the effects of these transactions in the T accounts. Paid $1,300 for one month’s rent. Collected $5,100 in cash from credit customers. Performed services for $7,300 in cash. Paid $4,300 for salaries. Issued a check for $3,300 to a creditor. Performed services for $10,300 on credit. Purchased office equipment for $1,300 on credit. The owner withdrew $3,300 in cash for personal expenses. Issued a check for $630 to pay the monthly utility bill. Post the above transactions into the appropriate T accounts. Using the information shown, prepare a trial balance for Martin and Associates at December 31, 2019.

Answer 1

Beg. Bal. Accts. Rec. Fees Inc. Beg. Bal. Fees Inc. Accounts Receivable $8,300 $5,100 Cash $10,300 Office Equipment Beg. Bal. $7,800 Accts. Pay. $1,300 Cash $5,300 $1,300 $5,100 $4,300 $7,300 $3,300 $3,300 $630 $4,870 Rent Salaries Accts. Pay. Drawing Utility Exp. End. Bal. End. Bal. $13,500 End. Bal. $9,100 Joan Martin, Capital $15,600 Beg. Bal. Cash Accounts Payable $3,300 $5,800 $1,300 $3,800 Beg. Bal. Off. Equip. End. Bal. Joan Martin, Drawing Beg. Bal. $0 Cash $3,300 End. Bal. $3,300 $15,600 End. Bal. Rent Expense Utilities Expense Beg. Bal. SO Beg. Bal. Fees Income $0 $7,300 $10,300 $17,600 Beg. Bal. Cash Accts. Rec. End. Bal. Cash End. Bal. $1,300 $1,300 Cash End. Bal. $630 $630 Beg. Bal. Cash End. Bal. Salaries Expense $0 $4,300 $4,300

Credit Cash Martin and Associates Trial Balance December 31, 2019 Account Titles Debit $4,870 Accounts Receivable $13,500 Office Equipment $9,100 Accounts Payable Joan Martin, Capital Joan Martin, Drawing $3,300 Fees Income Rent Expense $1,300 Utilities Expense $630 Salaries Expense $4,300 Totals $37,000 $3,800 $15,600 $17,600 $37,000