Describing transactions, postingto T-accounts, and preparing a trial balance [20-30 min]
The journal of Ward Technology Solutions, Inc., includes the following entries for May, 2012:
May 1 | The business received cash of $75,000 and issued common stock. |
2 | Purchased supplies of $500 on account. |
4 | Paid $53,000 cash for a building. |
6 | Performed service for customers and received cash, $2,600. |
9 | Paid $400 on accounts payable. |
17 | Performed service for customers on account, $2,500. |
23 | Received $1,900 cash on account from a customer. |
31 | Paid the following expenses: salary, $1,100; rent, $900. |
Requirements
1. Describe each transaction. For example, the May 4 transaction description could be “Paid cash for building.”
2. Open T-accounts using the following account numbers: Cash, 110; Accounts receivable, 120; Supplies, 130; Building, 140; Accounts payable, 210; Common stock, 310; Service revenue, 410; Rent expense, 510; Salary expense, 520.
3. Post to the accounts. Write dates and journal references (use account numbers) in the accounts. Compute the balance of each account after posting.
4. Prepare the trial balance of Ward Technology Solutions at May 31, 2012.
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