(L. OBJ. 2, 3, 4, 5) Recording transactions, using four-column accounts, posting, and pr...

(L. OBJ. 2, 3, 4, 5) Recording transactions, using four-column accounts, posting, and preparing a trial balance [45—60 min]

Vann Stubbs started Stubbs Carpet Installers and during the first month of operations (December 2011) the business completed the following selected transactions:

Requirements

1. Open the following four-column accounts: Cash; Accounts receivable; Supplies; Equipment; Automobile; Accounts payable; Vann Stubbs, Capital; Vann Stubbs, Withdrawals; Service revenue; Salary expense; Rent expense; Advertising expense; Insurance expense.

2. Record the transactions in the journal. Use the letters to identify the transactions.

3. Post to the accounts and keep a running balance for each account.

4. Prepare the trial balance of Stubbs Carpet installers at December 31, 2011.