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

Journal Entries : S.No Particulars Debit Credit Cash Common Stock $ 21,500 $ 21,500 $ 11,400 Office Equipment Accounts Payable $ 11,400 Rent Expense $ 1,100 Cash $ 1,100 Legal Database Subscription Cash $ 9 $ 9,750 $ 14,000 Accounts Receivables Legal Fee Earned $ 14,000 Accounts Payable Cash $ 6,000 $ 6,000 7 $ 2,800 Salary Expense Cash 2,800 $ 7,500 Cash Accounts Receivables $ 7,500 $ 190 Utilities Expense Accounts Payable $ 190 Dividend Expense Cash $ 1,500 $ 1,500

Posting to T - Accounts: Cash Particulars A mount ($) Particulars Amount ($) Common Stock $ 21,500 Rent Expense 1,100 Accounts Receivables $ 7,500 Legal Database Subs. $ 9,750 Accounts Payable 6,000 Salary Expense 2,800 Dividends Expense 1,500 Balance c/f 7,850 $ 29,000 $ 29,000 A A A Particulars Legal Fees Earned Accounts Receivables Amount ($) Particulars $ 14,000 Cash Balance c/f $ 14,000 Amount ($) $ 7,500 $ 6,500 $ 14,000 Particulars Accounts Payable Office Equipment Amount ($) Particulars $ 11,400 Balance c/f $ 11,400 Amount ($) $ 11,400 $ 11,400 Particulars Cash Legal Database Subscription A mount ($) Particulars $ 9,750 Balance c/f $ 9,750 Amount ($) $ 9,750 $ 9,750 Particulars Cash Balance c/f Accounts Payable A mount ($) Particulars 6,000 Office Equipment $ 5,590 Utilities Expense $ 11,590 Amount ($) $ 11,400 $ 190 $ 11,590

Particulars Balance c/f Common Stock Amount ($) Particulars $ 21,500 Cash $ 21,500 Amount ($) $ 21,500 $ 21,500 Dividends Amount ($) Particulars $ 1,500 Particulars Cash Amount ($) Particulars Legal Fees Earned A mount ($) Particulars Accounts Receivables Amount ($) $ 14,000 Rent Expense Amount ($) Particulars $ 1,100 Particulars Cash Amount ($) Salaries Expense Amount ($) Particulars $ 2,800 Particulars Cash Amount ($) Utilities Expense Amount ($) Particulars Amount ($) Particulars Accounts Payable 190