Question

Olivia Matthews, Certified Public Accountant, operates as a professional corporation, (P.C.). The business completed these transactions during the first part of May 2018: Click the icon to view the transactions.) Read the requirements Requirement 1. Joumalize the transactions. Explanations are not required. (Record debits first, then credits. Excludo explanations from joumal entries.) May 2: Received $12,000 cash from Matthews, and issued common stock to her. Journal Entry Date Accounts Debit Credit May 2

Answer 1

1. JOURNAL ENTRIES.

Date	Accounts	Debit	Credit
May 2	Cash	$ 12,000
	To common stock		$ 12,000
May 2	Rent	$ 500
	To Cash		$ 500
May 3	Computer	$ 1,800
	To Cash		$ 1,800
May 4	Furniture	$ 6,000
	To Accounts payable		$ 6,000
May 5	Supplies	$ 900
	To Accounts payable		$ 900
May 9	Cash	$ 600
	To Service revenue		$ 600
May 12	Utility expense	$ 750
	To Cash		$ 750
May 18	Accounts receivable	$ 3,100
	To Service revenue		$ 3,100

2. T ACCOUNTS.

CASH ACCOUNT

Date		Amount	Date		Amount
May 2	To common stock	$ 12,000	May 2	By Rent	$ 500
May 9	To Service revenue	$ 600	May 4	By computer	$ 1,800
			May 12	By utility expense	$ 750
			May 18	By balance	$ 9,550
TOTAL		$ 12,600			$ 12,600

COMMON STOCK

Date		Amount	Date		Amount
May 18	To Balance	$ 12,000	May 2	By Cash	$12,000
TOTAL		$ 12,000			$ 12,000

RENT ACCOUNT

Date		Amount	Date		Amount
May 2	To Cash	$ 500	May 18	By balance	$ 500
TOTAL		$ 500			$ 500

COMPUTER

Date		Amount	Date		Amount
May 3	To Cash	$ 1,800	May 18	By balance	$ 1,800
TOTAL		$ 1,800			$ 1,800

FURNITURE

Date		Amount	Date		Amount
May 4	To Accounts payable	$ 6,000	May 18	By balance	$ 6,000
TOTAL		$ 6,000			$ 6,000

ACCOUNTS PAYABLE

Date		Amount	Date		Amount
			May 4	By furniture	$ 6,000
May 18	To Balance	$ 6,900	May 5	By supplies	$ 900
TOTAL		$ 6,900			$ 6,900

SUPPLIES

Date		Amount	Date		Amount
May 5	To Accounts payable	$ 900	May 18	By balance	$ 900
TOTAL		$ 900			$ 900

SERVICE REVENUE

Date		Amount	Date		Amount
			May 9	By cash	$ 600
May 18	To balance	$ 3,700	May 18	By accounts receivable	$ 3,100
TOTAL		$ 3,700			$ 3,700

UTILITY EXPENSE

Date		Amount	Date		Amount
May 12	To Cash	$ 750	May 18	By balance	$ 750
TOTAL		$ 750			$ 750

ACCOUNTS RECEIVABLE

Date		Amount	Date		Amount
May 18	To Service revenue	$ 3,100	May 18	By balance	$ 3,100
TOTAL		$ 3,100			$ 3,100

3. TRIAL BALANCE.

Account	Debit	Credit
Cash	$ 9,550
Common stock		$ 12,000
Computer	$ 1,800
Furniture	$ 6,000
Rent	$ 500
Utility expense	$ 750
Service revenue		$ 3,700
Accounts receivable	$ 3,100
Accounts payable		$ 6,900
Supplies	$ 900
TOTAL	$ 22,600	$ 22,600

SUMMARY:

Total of trial balance is $ 22,600.