Question

P2-30A Journalizing transactions, posting journal entries to T-accounts, and preparing a trial balance Ann Simpson started her practice as a design consultant on September 1, 2018. During the first month of operations, the business completed the following transactions: Sep. 1 Received $48,000 cash and issued common stock to Simpson. 4 Purchased office supplies, $1,200, and furniture, $1,300, on account. 6 Performed services for a law firm and received $1,900 cash. 7 Paid $18,000 cash to acquire land to be used in operations. 10 Performed services for a hotel and received its promise to pay the $1,200 within one week. 14 Paid for the furniture purchased on September 4 on account. 15 Paid assistant's semimonthly salary, 51,500. 17 Received cash on account, $1,000. 20 Prepared a design for a school on account, $650. Received $2,100 cash for design services to be performed in October. 28 Received $2,900 cash for consulting with Plummer & Gordon. 29 Paid 5600 cash for a 12-month insurance policy starting on October 1. 30 Paid assistant's semimonthly salary, $1,500. 30 Paid monthly rent expense, $600. 30 Received a bill for utilities, $350. The bill will be paid next month. 30 Paid cash dividends of $3,700. Requirements 1. Record each transaction in the journal using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Land; Furniture; Accounts Payable; Utilities Payable; Unearned Revenue; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required. 2. Open a T account for each of the accounts.

Answer 1

Answer:

Journal Entries:

Date	Account title and Explanation	Debit	Credit
Sept.1	Cash	$48,000
	Common stock		$48,000
	[To record issuance of common stock]
4	Supplies	$1,200
	Furniture	$1,300
	Accounts payable		$2,500
	[To record purchase of supplies and furniture on account]
6	Cash	$1,900
	Service revenue		$1,900
	[To record cash received for services]
7	Land	$18,000
	Cash		$18,000
	[To record purchased land for cash]
10	Accounts receivable	$1,200
	Service revenue		$1,200
	[To record services performed on account]
14	Accounts payable	$1,300
	Cash		$1,300
	[To record paid for accounts payable]
15	Salaries expense	$1,500
	Cash		$1,500
	[To record payment of salaries]
17	Cash	$1,000
	Accounts receivable		$1,000
	[To record cash received from customers]
20	Accounts receivable	$650
	Service revenue		$650
	[To record services performed on account]
25	Cash	$2,100
	Unearned revenue		$2,100
	[To record advance received from customers]
28	Cash	$2,900
	Service revenue		$2,900
	[To record cash received for services]
29	Prepaid insurance	$600
	Cash		$600
	[To record cash paid in advance for insurance]
30	Salaries expense	$1,500
	Cash		$1,500
	[To record payment of salaries]
30	Rent expense	$600
	Cash		$600
	[To record payment of rent]
30	Utilities expense	$350
	Accounts payable		$350
	[To record accrued utilities expense]
30	Cash dividends	$3,700
	Cash		$3,700
	[To record payment of cash dividends]