(L. OBJ. 2, 4, 5) Applying the rules of debit and credit, posting, and preparing a trial...

(L. OBJ. 2, 4, 5) Applying the rules of debit and credit, posting, and preparing a trial balance [15—25 min]

Refer to the transactions of Advanced Engineering in Exercise 2-16.

Requirements

1. Open the following T-accounts with their September 1 balances: Cash, debit balance $3,000; Accounts receivable $0; Equipment $0; Land, debit balance $36,000; Supplies $0; Accounts payable $0; Notes payable $0; Al Nyquist, Capital, credit balance $39,000; Service revenue $0; Utilities expense $0.

2. Post the transactions of Exercise 2-16 to the T-accounts. Use the dates as posting references. Start with September 2.

3. Compute the September 30, 2010, balance for each account, and prove that total debits equal total credits by preparing a trial balance.