Problem

Journalizing transactions, posting to accounts in four-column format, and preparing a tria...

Journalizing transactions, posting to accounts in four-column format, and preparing a trial balance [45-60 min]

The trial balance of Shermana Peters, Registered Dietician, P.C., at June 30, 2012, follows:

During July, Peters or her business completed the following transactions:

Jul4	Collected $7,000 cash from a client on account.
7	Performed a nutritional analysis for a hospital on account, $4,900.
12	Peters used personal funds to pay for the renovation of her private residence, $53,000.
16	Purchased supplies on account, $800.
19	Paid cash dividends of $2,200.
20	Paid business debt on account, $2,300.
24	Received $2,100 cash for consulting with Bountiful Foods.
25	Paid rent, $300.
31	Paid employee salary, $1,500.

Requirements

1. Record the July transactions in the business’s journal. Include an explanation for each entry.
2. Post the transactions to four-column accounts in the ledger, using dates, account numbers, journal references, and posting references.
3. Prepare the trial balance of Shermana Peters, Registered Dietician, P.C., at July 31, 2012.