Question

Tom Zopf owns and manages a computer repair service, which had the following trial balance on December 31, 2018 (the end of its fiscal year).

Metlock, Inc.
Trial balance
December 31, 2018

		Debit
Cash		$ 9,000
Accounts Receivable		15,100
Supplies		13,400
Prepaid Rent		2,500
Equipment		19,100
Accounts Payable				$16,900
Common Stock				30,800
Retained Earnings				11,400
		$59,100		$59,100

Summarized transactions for January 2019 were as follows.

1.		Advertising costs, paid in cash, $1,110.
2.		Additional supplies acquired on account $3,160.
3.		Miscellaneous expenses, paid in cash, $1,980.
4.		Cash collected from customers in payment of accounts receivable $12,920.
5.		Cash paid to creditors for accounts payable due $12,840.
6.		Repair services performed during January: for cash $6,260; on account $8,930.
7.		Wages for January, paid in cash, $2,400.
8.		Dividends during January were $2,700.

a. Open T-accounts for each of the accounts listed in the trial balance, and enter the opening balances for 2019.

b. Prepare journal entries to record each of the January transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

c. Post the journal entries to the accounts in the ledger. (Post entries in the order of journal entries presented in the previous part.)

d. Prepare a trial balance as of January 31, 2019.

Answer 1

Ans-a-

	Cash
Bal.	$9,000	Bal.
	Accounts Receivable
Bal.	15,100	Bal.
	Supplies
Bal.	13,400	Bal.
	Prepaid Rent
Bal.	2,500	Bal.
	Equipment
Bal.	19,100	Bal.
	Accounts Payable
Bal.		Bal.	$16,900
	Common Stock
Bal.		Bal.	30,800
	Retained Earnings
Bal.		Bal.	11,400

Ans-b- Journal Entries

No.	Accounts Titles and Explanation	Debit ($)	Credit ($)
1	Advertising Expenses A/c Dr.	1,110
	Cash A/c		1,110
	(To record the advertising expenses paid in cash )
2	Supplies A/c Dr.	3,160
	Accounts Payable A/c		3,160
	(To record the supplies acquired on account )
3	Miscellaneous Expenses A/c Dr.	1,980
	Cash A/c		1,980
	(To record the miscellaneous expenses paid in cash)
4	Cash Ac Dr.	12,920
	Accounts Receivable A/c		12,920
	(To record the cash received from the customers)
5	Accounts Payable A/c Dr.	12,840
	Cash A/c		12,840
	(To record the cash paid to the accounts payable)
6	Cash A/c Dr.	6,260
	Accounts Receivables A/c Dr.	8,930
	Service Revenue A/c		15,190
	(To record the service revenue)
7	Salaries and Wages Expenses A/c Dr.	2,400
	Cash A/c		2,400
	(To record the salaries and wages expenses paid in cash)
8	Dividends A/c Dr.	2,700
	Cash A/c		2,700
	(To record the dividends paid in cash)

Ans-c-  

	Cash
Bal.	9,000	1	1,110
4	12,920	3	1,980
6	6,260	5	12,840
		7	2,400
		8	2,700
Bal.	7,150
	Accounts Receivable
Bal.	15,100	4	12,920
6	8,930
Bal.	11,110
	Supplies
Bal.	13,400
2	3,160
Bal.	16,560
	Prepaid Rent
Bal.	2,500
	Equipment
Bal.	19,100
	Accounts Payable
5	12,840	Bal.	16,900
		2	3,160
		Bal.	7,220
	Common Stock
		Bal.	30,800
	Retained Earnings
		Bal.	11,400
	Dividends
8	2,700
Bal.	2,700
	Service Revenue
		6	15,190
		Bal.	15,190
	Advertising Expenses
1	1,110
Bal.	1,110
	Miscellaneous Expenses
3	1,980
Bal.	1,980
	Salaries and Wages Expenses
7	2,400
Bal.	2,400

Ans-d- Metlock Inc.

Trial Balance

January 31, 2018

Accounts	Debit ($)	Credit ($)
Cash	7,150
Accounts Receivable	11,110
Supplies	16,560
Prepaid Rent	2,500
Equipment	19,100
Accounts Payable		7,220
Common Stock		30,800
Retained Earnings		11,400
Dividends	2,700
Service Revenue		15,190
Advertising Expenses	1,110
Miscellaneous Expenses	1,980
Salaries and Wages Expenses	2,400
Totals	64,610	64,610

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