Question

Transaction Analysis and Trial Balance Make T-accounts for the following accounts that appear in the general ledger of Dave Jennings, an attorney: Cash; Accounts Receivable: Office Equipment: Legal Database Subscription: Accounts Payable; Common Stock Dividends: Legal Fees Earned; Salaries Expense; Rent Expense; and Utilities Expense. Using the accounting equation, record each of the transactions in a columnar format. Prepare journal entries and record the following October transactions in the T- accounts and key all entries with the number identifying the transaction. Determine the balance in each account and prepare a trial balance sheet as of October 31. 1 Jennings started his law practice by contributing $21.500 cash to the business on October 1, receiving shares of common stock in the company 2 Purchased office equipment on count, 511,400. 3 Paid office rent for October 31,100. 4 Paid 59,750 to access online legal database for two years 5 Billed clients for services rendered, $14,000 6 Made 16.000 payment on account for the equipment purchased on October 2. 7 Paid legal assistant's salary: $2800. 8 Collected $7.500 from clients previously billed for services 9 Received invoice for October utilities, 5190; will be paid in November 10 Paid stockholders $1,500 as a cash dividend. years Support 7:19 PM S 0 520

Answer 1

Cash 1 21,500 5 8 Bal. Accounts receivable 14,000 7,500 6,500 Office equipment 11,400 11,400 1,100 9,750 6,000 2,800 8 7 ,500 Legal database subscription 9,750 9,750 4 1,500 7,850 Accounts payable 11,400 6,000 190 5,590 Common stock 21,500 21,500 10 Dividends 1,500 1,500 Bal. al. Bal. Legal fees earned 14,000 14,000 Bal. 7 Bal. Salaries expense 2,800 2,800 Rent expense 1,100 1,100 Utilities expense 190 190 Bal.