Recording events in the general journal, posting to T-accounts, and preparing a trial balance
The following events apply to Complete Business Service in 2011, its first year of operations.
1. Received $30,000 cash from the issue of common stock.
2. Earned $25,000 of service revenue on account.
3. Incurred $10,000 of operating expenses on account
4. Received $20,000 cash for performing services.
5. Paid $8,000 cash to purchase land.
6. Collected $22,000 of cash from accounts receivable.
7. Received a $6,000 cash advance for services to be provided in the future.
8. Purchased $900 of supplies on account.
9. Made a $7,500 payment on accounts payable.
10. Paid a $5,000 cash dividend to the stockholders. i
11. Recognized $500 of supplies expense.
12. Recognized $5,000 of revenue for services provided to the customer in Event 7.
13. Recognized $900 of accrued interest revenue.
Required
a. Record the events in the general journal.
b. Post the events to T-accounts and determine the ending account balances.
c. Test the equality of the debit and credit balances of the T-accounts by preparing a trial balance.
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