Question

2 of 2 (0 complete) * More Info Jan. 1 Murphy contributed $78,000 cash to the business, Terrence Murphy, Attorney. The business issued common stock to Murphy. Purchased office supplies, $600, and furniture, $1,700, on account. Performed legal services for a client and received $1,000 cash. Purchased a building with a market value of $130,000, and land with a market value of $25,000. The business paid $25,000 cash and signed a note payable to the bank for the remaining amount. Prepared legal documents for a client on account, $400. Paid assistant's semimonthly salary, $1,120. Paid for the office supplies purchased on January 3 on account. Received $2,700 cash for helping a client sell real estate. Defended a client in court and billed the client for $1,800. Received a bill for utilities, $600. The bill will be paid next month. Received cash on account, $1,500. Paid $1,200 cash for a 12-month insurance policy starting on February 1. Print Print Done Done

Answer 1

1.

Date	Accounts	Debit	Credit
Jan. 1	Cash	78000
	Common stock		78000
Jan. 3	Office supplies	600
	Furniture	1700
	Accounts payable		2300
Jan. 4	Cash	1000
	Service revenue		1000
Jan. 7	Building	130000
	Land	25000
	Cash		25000
	Notes payable		130000
Jan. 11	Accounts receivable	400
	Service revenue		400
Jan. 15	Salaries expense	1120
	Cash		1120
Jan. 16	Accounts payable	600
	Cash		600
Jan. 18	Cash	2700
	Service revenue		2700
Jan. 19	Accounts receivable	1800
	Service revenue		1800
Jan. 25	Utilities expenses	600
	Utilities payable		600
Jan. 29	Cash	1500
	Accounts receivable		1500
Jan. 30	Prepaid insurance	1200
	Cash		1200
Jan. 30	Salaries expense	1120
	Cash		1120
Jan. 31	Rent Expense	1800
	Cash		1800
Jan. 31	Dividends	2200
	Cash		2200

2.

Cash					Accounts Receivable
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Jan. 1	78000		78000		Jan. 11	400		400
Jan. 4	1000		79000		Jan. 19	1800		2200
Jan. 7		25000	54000		Jan. 29		1500	700
Jan. 15		1120	52880
Jan. 16		600	52280
Jan. 18	2700		54980
Jan. 29	1500		56480
Jan. 30		1200	55280
Jan. 30		1120	54160
Jan. 31		1800	52360
Jan. 31		2200	50160
Office Supplies					Prepaid Insurance
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Jan. 3	600		600		Jan. 30	1200		1200
Land					Building
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Jan. 7	25000		25000		Jan. 7	130000		130000
Furniture					Accounts Payable
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Jan. 3	1700		1700		Jan. 3		2300	2300
					Jan. 16	600		1700
Utilities Payable					Notes Payable
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Jan. 25		600	600		Jan. 7		130000	130000
Common Stock					Dividends
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Jan. 1		78000	78000		Jan. 31	2200		2200
Service Revenue					Salaries Expense
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Jan. 4		1000	1000		Jan. 15	1120		1120
Jan. 11		400	1400		Jan. 30	1120		2240
Jan. 18		2700	4100
Jan. 19		1800	5900
Rent Expense					Utilities Expense
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Jan. 31	1800		1800		Jan. 25	600		600

3.

Terrence Murphy, Attorney
Trial Balance
At January 31, 2018
	Debit	Credit
Cash	50160
Accounts receivable	700
Office supplies	600
Prepaid insurance	1200
Land	25000
Building	130000
Furniture	1700
Accounts payable		1700
Utilities payable		600
Notes payable		130000
Common stock		78000
Dividends	2200
Service revenue		5900
Salaries expense	2240
Rent expense	1800
Utilities expense	600
Total $	216200	216200