Trial Balance
21. What are the normal balances for TSMC’s Cash, Accounts Payable, and Interest Expense accounts?
BE2-1 For each of the following accounts, indicate the effects of (a) a debit and (b) a credit on the accounts and (c) the normal balance of the account.
1. Accounts Payable.
2. Advertising Expense.
3. Service Revenue.
4. Accounts Receivable.
5. Share Capital—Ordinary.
6. Dividends.
BE2-2 Transactions for the Kaustav Sen Company ASA, which performs welding services, for the month of June are presented below. Identify the accounts to be debited and cred- ited for each transaction.
June 1 Kaustav Sen invests €4,000 cash in exchange for ordinary shares in a small welding business.
2 Purchases equipment on account for €900.
3 €800 cash is paid to landlord for June rent.
12 Sent an invoice to L. Nigh €300 for welding work performed on account.
BE2-3 Using the data in BE2-2, journalize the transactions. (You may omit explanations.)
BE2-4 Tim Weber, a fellow student, is unclear about the basic steps in the record- ing process. Identify and briefl y explain the steps in the order in which they occur.
BE2-5 J.A. Motzek SA has the following transactions during August of the current year.
Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis illus- trated on pages 65–70.
Aug. 1 Opens an offi ce as a fi nancial advisor, investing R$5,000 in cash in exchange for ordinary shares.
4 Pays insurance in advance for 6 months, R$1,800 cash.
16 Receives R$1,100 from clients for services performed.
27 Pays secretary R$1,000 salary.
BE2-6 Using the data in BE2-5, journalize the transactions. (You may omit explanations.)
BE2-7 Selected transactions for the Gilles Ltd. are presented in journal form on the next page. Post the transactions to T-accounts. Make one T-account for each item and determine each account’s ending balance.
Indicate debit and credit effects and normal balance.
(LO 2)
Identify accounts to be debited and credited.
(LO 2)
Journalize transactions.
(LO 4)
Identify and explain steps in recording process.
(LO 3)
Indicate basic and debit-credit analysis.
(LO 2)
Journalize transactions.
(LO 4)
Post journal entries to T-accounts.
(LO 6)
BRIEF EXERCISES
DO IT! Review 83
BE2-8 Selected journal entries for the Gilles Ltd. are presented in BE2-7. Post the transac- tions using the standard form of account.
BE2-9 From the ledger balances given below, prepare a trial balance for the Starr SE at June 30, 2017. List the accounts in the order shown on page 73. All account balances are normal.
Accounts Payable €8,600, Cash €6,800, Share Capital—Ordinary €20,000, Dividends
€800, Equipment €17,000, Service Revenue €6,000, Accounts Receivable €3,000, Salaries and Wages Expense €6,000, and Rent Expense €1,000.
BE2-10 An inexperienced bookkeeper prepared the following trial balance. Prepare a correct trial balance, assuming all account balances are normal.
Post journal entries to standard form of account.
(LO 6)
Prepare a trial balance.
(LO 7)
Prepare a correct trial balance.
(LO 7) J1
Date Account Titles and Explanation Ref. Debit Credit
May 5 Accounts Receivable 5,000
Service Revenue 5,000
(Billed for services performed)
12 Cash 2,100
Accounts Receivable 2,100
(Received cash in payment of account)
15 Cash 3,000
Service Revenue 3,000
(Received cash for services performed)
CHENG COMPANY LTD.
Trial Balance December 31, 2017
Debit Credit
Cash £16,800
Prepaid Insurance £ 3,500
Accounts Payable 3,000
Unearned Service Revenue 4,200
Share Capital—Ordinary 13,000
Dividends 4,500
Service Revenue 25,600
Salaries and Wages Expense 18,600
Rent Expense 2,400
£39,600 £52,000
DO IT! 2-1 Graham Kahl has just rented space in a strip mall. In this space, he will open a photography studio, to be called “Picture This!” A friend has advised Graham to set up a double-entry set of accounting records in which to record all of his business transactions.
Identify the statement of fi nancial position accounts that Graham will likely need to record the transactions needed to open his business (a corporation). Indicate whether the normal balance of each account is a debit or credit.
DO IT! 2-2 Graham Kahl engaged in the following activities in establishing his photogra- phy studio, Picture This!:
1. Opened a bank account in the name of Picture This! and deposited £8,000 of his own money into this account in exchange for ordinary shares.
Identify normal balances.
(LO 2)
Record business activities.
(LO 4)
> DO IT! REVIEW
2. Purchased photography supplies at a total cost of £1,600. The business paid £400 in cash and the balance is on account.
3. Obtained estimates on the cost of photography equipment from three different manufacturers.
In what form (type of record) should Graham record these three activities? Prepare the entries to record the transactions.
DO IT! 2-3 Graham Kahl recorded the following transactions during the month of April.
April 3 Cash 3,100
Service Revenue 3,100
16 Rent Expense 600
Cash 600
20 Salaries and Wages Expense 500
Cash 500
Post these entries to the Cash T-account of the general ledger to determine the ending balance in cash. The beginning balance in cash on April 1 was £1,600.
DO IT! 2-4The following accounts are taken from the ledger of Chillin’ Company SA at December 31, 2017.
200 Notes Payable R$20,000 101 Cash R$6,000
311 Share Capital—Ordinary 25,000 126 Supplies 5,000
157 Equipment 76,000 729 Rent Expense 2,000
332 Dividends 8,000 212 Salaries and
726 Salaries and Wages Payable 3,000
Wages Expense 38,000 201 Accounts Payable 9,000 400 Service Revenue 86,000 112 Accounts Receivable 8,000 Prepare a trial balance in good form.
Post transactions.
(LO 6)
Prepare a trial balance.
(LO 7)
E2-1 Larry Burns has prepared the following list of statements about accounts.
1. An account is an accounting record of either a specifi c asset or a specifi c liability.
2. An account shows only increases, not decreases, in the item it relates to.
3. Some items, such as cash and accounts receivable, are combined into one account.
4. An account has a left, or credit side, and a right, or debit side.
5. A simple form of an account, consisting of just the account title, the left side, and the right side, is called a T-account.
Instructions
Identify each statement as true or false. If false, indicate how to correct the statement.
E2-2 Selected transactions for B. Madar SE, an interior decorating fi rm, in its fi rst month of business, are shown below.
Jan. 2 Invested €15,000 cash in the business in exchange for ordinary shares.
3 Purchased used car for €7,000 cash for use in the business.
9 Purchased supplies on account for €500.
11 €1,800 of services were performed and billed.
16 Paid €200 cash for advertising.
20 Received €700 cash from customers billed on January 11.
23 Paid creditor €300 cash on balance owed.
28 Declared and paid a €1,000 cash dividend.
Analyze statements about accounting and the recording process.
(LO 1)
Identify debits, credits, and normal balances.
(LO 2)
EXERCISES
Exercises 85
Instructions
For each transaction indicate the following.
(a) The basic type of account debited and credited (asset, liability, equity).
(b) The specifi c account debited and credited (cash, rent expense, service revenue, etc.).
(c) Whether the specifi c account is increased or decreased.
(d) The normal balance of the specifi c account.
Use the following format, in which the January 2 transaction is given as an example.
Account Debited Account Credited (a) (b) (c) (d) (a) (b) (c) (d) Basic Specifi c Normal Basic Specifi c Normal Date Type Account Effect Balance Type Account Effect Balance Jan. 2 Asset Cash Increase Debit Equity Share Increase Credit
Capital
E2-3 Data for B. Madar SE, interior decorating, are presented in E2-2.
Instructions
Journalize the transactions using journal page J1. (You may omit explanations.) E2-4 Presented below is information related to Beijing Real Estate Agency Ltd.
Oct. 1 Lynn Robbins begins business as a real estate agent with a cash investment of
¥200,000 in exchange for ordinary shares.
2 Hires an administrative assistant.
3 Purchases offi ce furniture for ¥19,000, on account.
6 Sells a house and lot for N. Fennig; bills N. Fennig ¥32,000 for realty services performed.
27 Pays ¥8,500 on the balance related to the transaction of October 3.
30 Pays the administrative assistant ¥25,000 in salary for October.
Instructions
Prepare the debit-credit analysis for each transaction as illustrated on pages 65–70.
E2-5 Transaction data for Beijing Real Estate Agency Ltd. are presented in E2-4.
Instructions
Journalize the transactions. (You may omit explanations.) E2-6 Minsk Industries OAO had the following transactions.
1. Borrowed py 50,000 from the bank by signing a note.
2. Paid py 25,000 cash for a computer.
3. Purchased py 4,500 of supplies on account.
Instructions
(a) Indicate what accounts are increased and decreased by each transaction.
(b) Journalize each transaction. (Omit explanations.)
E2-7 Rockford Enterprises Ltd. had the following selected transactions.
1. Kris Rockford invested £5,500 cash in the business in exchange for ordinary shares.
2. Paid offi ce rent of £1,100.
3. Performed consulting services worth £4,700 on account.
4. Declared and paid a £400 cash dividend.
Instructions
(a) Indicate the effect each transaction has on the accounting equation (Assets = Liabili- ties + Equity), using plus and minus signs.
(b) Journalize each transaction. (Omit explanations.)
E2-8 Rachel Manny has prepared the following list of statements about the general ledger.
1. The general ledger contains all the asset and liability accounts, but no equity accounts.
2. The general ledger is sometimes referred to as simply the ledger.
Journalize transactions.
(LO 4)
Analyze transactions and determine their effect on accounts.
(LO 2)
Journalize transactions.
(LO 4)
Analyze transactions and journalize.
(LO 2, 3, 4)
Analyze transactions and journalize.
(LO 2, 3, 4)
Analyze statements about the ledger.
(LO 5)
3. The accounts in the general ledger are arranged in alphabetical order.
4. Each account in the general ledger is numbered for easier identifi cation.
5. The general ledger is a book of original entry.
Instructions
Identify each statement as true or false. If false, indicate how to correct the statement.
E2-9 Selected transactions from the journal of Roberta Mendez SLU, investment broker, are presented below.
Post journal entries and prepare a trial balance.
(LO 6, 7)
Date Account Titles and Explanation Ref. Debit Credit
Aug. 1 Cash 5,000
Share Capital—Ordinary 5,000
(Investment of cash for shares)
10 Cash 2,700
Service Revenue 2,700
(Received cash for services performed)
12 Equipment 5,000
Cash 1,500
Notes Payable 3,500
(Purchased offi ce equipment for cash and notes payable)
25 Account Receivable 1,900
Service Revenue 1,900
(Billed clients for services performed)
31 Cash 850
Accounts Receivable 850
(Receipt of cash on account)
Instructions
(a) Post the transactions to T-accounts.
(b) Prepare a trial balance at August 31, 2017.
E2-10 The T-accounts below summarize the ledger of Pierre Landscaping Company SA at the end of the fi rst month of operations.
Journalize transactions from account data and prepare a trial balance.
(LO 4, 7)
Instructions
(a) Prepare the complete general journal (including explanations) from which the post- ings to Cash were made.
(b) Prepare a trial balance at April 30, 2017.
Share Capital—Ordinary No. 311
4/1 10,000
Service Revenue No. 400
4/7 3,200
4/12 900
Salaries and
Wages Expense No. 726 4/15 720
Cash No. 101
4/1 10,000 4/15 720
4/12 900 4/25 1,500
4/29 400 4/30 1,000
Accounts Receivable No. 112
4/7 3,200 4/29 400
Supplies No. 126
4/4 1,800
Accounts Payable No. 201
4/25 1,500 4/4 1,800
Unearned
Service Revenue No. 209
4/30 1,000
Exercises 87
E2-11 Presented below is the ledger for Sparks Co. Ltd. Journalize transactions from account data and prepare a trial balance.
(LO 4, 7) Share Capital—Ordinary No. 311
10/1 5,000
10/25 2,000
Dividends No. 332
10/30 300
Service Revenue No. 400
10/6 1,100
10/10 650
10/20 940
Salaries and
Wages Expense No. 726 10/31 600
Rent Expense No. 729 10/15 280
Cash No. 101
10/1 5,000 10/4 400
10/10 650 10/12 1,500
10/10 3,000 10/15 280
10/20 500 10/30 300
10/25 2,000 10/31 600
Accounts Receivable No. 112
10/6 1,100 10/20 500
10/20 940
Supplies No. 126
10/4 400
Equipment No. 157
10/3 2,000
Notes Payable No. 200
10/10 3,000
Accounts Payable No. 201
10/12 1,500 10/3 2,000
Instructions
(a) Reproduce the journal entries for the transactions that occurred on October 1, 10, and 20, and provide explanations for each.
(b) Determine the October 31 balance for each of the accounts above, and prepare a trial balance at October 31, 2017.
E2-12 Selected transactions for Isabella Rossini Company SpA during its fi rst month in business are presented below.
Sept. 1 Invested €10,000 cash in the business in exchange for ordinary shares.
5 Purchased equipment for €12,000 paying €4,000 in cash and the balance on account.
25 Paid €2,400 cash on balance owed for equipment.
30 Declared and paid a €500 cash dividend.
Rossini’s chart of accounts shows No. 101 Cash, No. 157 Equipment, No. 201 Accounts Payable, No. 311 Share Capital—Ordinary, and No. 332 Dividends.
Instructions
(a) Journalize the transactions on page J1 of the journal. (Omit explanations.) (b) Post the transactions using the standard account form.
E2-13 The bookkeeper for Arno Equipment Repair NV made a number of errors in jour- nalizing and posting, as described below.
1. A credit posting of €400 to Accounts Receivable was omitted.
2. A debit posting of €750 for Prepaid Insurance was debited to Insurance Expense.
3. A collection from a customer of €100 in payment of its account owed was journalized and posted as a debit to Cash €100 and a credit to Service Revenue €100.
4. A credit posting of €300 to Property Taxes Payable was made twice.
5. A cash purchase of supplies for €250 was journalized and posted as a debit to Supplies
€230 and a credit to Cash €230.
6. A debit of €495 to Advertising Expense was posted as €459.
Instructions For each error:
(a) Indicate whether the trial balance will balance.
(b) If the trial balance will not balance, indicate the amount of the difference.
(c) Indicate the trial balance column that will have the larger total.
Prepare journal entries and post using standard account form.
(LO 4, 6)
Analyze errors and their effects on trial balance.
(LO 7)
Consider each error separately. Use the following form, in which error (1) is given as an example.
(a) (b) (c)
Error In Balance Difference Larger Column
(1) No $400 debit
E2-14 The accounts in the ledger of Tempus Fugit Delivery Service Ltd. contain the following balances on July 31, 2017.
Accounts Receivable £10,642 Prepaid Insurance £ 1,968 Accounts Payable 8,396 Maintenance and Repairs Expense 961
Cash ? Service Revenue 10,610
Equipment 49,360 Dividends 700
Gasoline Expense 758 Share Capital—Ordinary 40,000
Utilities Expense 523 Salaries and Wages Expense 4,428 Notes Payable 26,450 Salaries and Wages Payable 815
Retained Earnings 4,636
Instructions
Prepare a trial balance with the accounts arranged as illustrated in the chapter and fi ll in the missing amount for Cash.
E2-15 The statement of cash fl ows classifi es each transaction as an operating activity, an investing activity, or a fi nancing activity. Operating activities are the types of activities the company performs to generate profi ts. Investing activities include the purchase of long- lived assets such as equipment or the purchase of investment securities. Financing activi- ties are borrowing money, issuing shares, and paying dividends.
Presented below are the following transactions.
1. Issued shares for €20,000 cash.
2. Issued note payable for €10,000 cash.
3. Purchased equipment for €11,000 cash.
4. Received €15,000 cash for services performed.
5. Paid €1,000 cash for rent.
6. Paid €600 cash dividend to shareholders.
7. Paid €6,500 cash for salaries.
Instructions
Classify each of these transactions as operating, investing, or fi nancing activities.
Prepare a trial balance.
(LO 2, 7)
Identify cash fl ow activities.
(LO 7)
P2-1A Prairie Park ASA was started on April 1 by F. L. Wright and associates. The follow- ing selected events and transactions occurred during April.
Apr. 1 Shareholders invested €50,000 cash in the business in exchange for ordinary shares.
4 Purchased land costing €34,000 for cash.
8 Incurred advertising expense of €1,800 on account.
11 Paid salaries to employees €1,500.
12 Hired park manager at a salary of €4,000 per month, effective May 1.
13 Paid €1,500 cash for a one-year insurance policy.
17 Declared and paid a €1,400 cash dividend.
20 Received €6,400 in cash for admission fees.
25 Sold 100 coupon books for €30 each. Each book contains 10 coupons that entitle the holder to one admission to the park.
30 Received €8,500 in cash admission fees.
30 Paid €900 on balance owed for advertising incurred on April 8.
Prairie Park uses the following accounts: Cash, Prepaid Insurance, Land, Accounts Payable, Unearned Service Revenue, Share Capital—Ordinary, Dividends, Service Revenue, Adver- tising Expense, and Salaries and Wages Expense.
Journalize a series of transactions.
(LO 2, 4)
PROBLEMS: SET A
Problems: Set A 89
Instructions
Journalize the April transactions.
P2-2A Lena Fohn is a licensed accountant. During the fi rst month of operations of her business, Lena Fohn, AG, the following events and transactions occurred.
May 1 Shareholders invested €20,000 cash in exchange for ordinary shares.
2 Hired a secretary-receptionist at a salary of €2,000 per month.
3 Purchased €1,500 of supplies on account from Hartig Supply Company.
7 Paid offi ce rent of €900 cash for the month.
11 Completed a tax assignment and billed client €2,800 for services performed.
12 Received €3,500 advance on a management consulting engagement.
17 Received cash of €1,200 for services performed for Lucille Co.
31 Paid secretary-receptionist €2,000 salary for the month.
31 Paid 40% of balance due Hartig Supply Company.
Lena uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 311 Share Capital—Ordinary, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.
Instructions
(a) Journalize the transactions.
(b) Post to the ledger accounts.
(c) Prepare a trial balance on May 31, 2017.
P2-3A Sean Browne owns and manages a computer repair service, which had the follow- ing trial balance on December 31, 2016 (the end of its fi scal year).
Journalize transactions, post, and prepare a trial balance.
(LO 2, 4, 6, 7)
(c) Trial balance totals
€28,400
Journalize and post trans- actions and prepare a trial balance.
(LO 2, 4, 6, 7) BYTE REPAIR SERVICE, LTD.
Trial Balance December 31, 2016
Cash £ 8,000
Accounts Receivable 16,000 Supplies 13,000
Prepaid Rent 3,000
Equipment 24,000
Accounts Payable £19,000
Share Capital—Ordinary 33,000
Retained Earnings 12,000
£64,000 £64,000
Summarized transactions for January 2017 were as follows.
1. Advertising costs, paid in cash, £1,000.
2. Additional supplies acquired on account £4,000.
3. Miscellaneous expenses, paid in cash, £1,100.
4. Cash collected from customers in payment of accounts receivable £13,000.
5. Cash paid to creditors for accounts payable due £15,000.
6. Repair services performed during January: for cash £5,000; on account £9,000.
7. Wages for January, paid in cash, £3,000.
8. Dividends during January were £2,000.
Instructions
(a) Open T-accounts for each of the accounts listed in the trial balance, and enter the opening balances for 2017.
(b) Prepare journal entries to record each of the January transactions. (Omit explanations.) (c) Post the journal entries to the accounts in the ledger. (Add accounts as needed.) (d) Prepare a trial balance as of January 31, 2017.
(d) Trial balance totals
£67,000
P2-4A The trial balance of the Jason Company Ltd. shown below does not balance.
Prepare a correct trial balance
(LO 7) JASON COMPANY LTD.
Trial Balance May 31, 2017
Debit Credit
Cash £ 3,850
Accounts Receivable £ 2,750
Prepaid Insurance 700
Equipment 12,000
Accounts Payable 4,500
Unearned Service Revenue 560
Share Capital—Ordinary 11,700
Service Revenue 8,690
Salaries and Wages Expense 4,200
Advertising Expense 1,100
Utilities Expense 800
£30,800 £20,050
Your review of the ledger reveals that each account has a normal balance. You also discover the following errors.
1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Utilities Expense were each understated £100.
2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were £2,570 and £8,960, respectively.
3. A debit posting to Salaries and Wages Expense of £200 was omitted.
4. A £1,000 cash dividend was debited to Share Capital—Ordinary for £1,000 and credited to Cash for £1,000.
5. A £520 purchase of supplies on account was debited to Equipment for £520 and cred- ited to Cash for £520.
6. A cash payment of £450 for advertising was debited to Advertising Expense for £45 and credited to Cash for £45.
7. A collection from a customer for £420 was debited to Cash for £420 and credited to Accounts Payable for £420.
Instructions
Prepare a correct trial balance. Note that the chart of accounts includes the following:
Dividends and Supplies. (Hint: It helps to prepare the correct journal entry for the transac- tion described and compare it to the mistake made.)
P2-5A The Classic Theater Ltd. opened on April 1. All facilities were completed on March 31.
At this time, the ledger showed No. 101 Cash €6,000, No. 140 Land €10,000, No. 145 Buildings (concession stand, projection room, ticket booth, and screen) €8,000, No. 157 Equipment
€6,000, No. 201 Accounts Payable €2,000, No. 275 Mortgage Payable €8,000, and No. 311 Share Capital—Ordinary €20,000. During April, the following events and transactions occurred.
Apr. 2 Paid fi lm rental of €800 on fi rst movie.
3 Ordered two additional fi lms at €1,000 each.
9 Received €1,800 cash from admissions.
10 Made €2,000 payment on mortgage and €1,000 for accounts payable due.
11 Classic Theater contracted with D. Zarle Company to operate the concession stand. Zarle is to pay 18% of gross concession receipts (payable monthly) for the rental of the concession stand.
12 Paid advertising expenses €300.
20 Received one of the fi lms ordered on April 3 and was billed €1,000. The fi lm will be shown in April.
25 Received €5,500 cash from admissions.
29 Paid salaries €1,600.
30 Received statement from D. Zarle showing gross concession receipts of €1,200 and the balance due to The Classic Theater of €216 (€1,200 × 18%) for April.
Zarle paid one-half of the balance due and will remit the remainder on May 5.
30 Prepaid €1,300 rental on special fi lm to be run in May.
Trial balance totals
£26,720
Journalize transactions, post, and prepare a trial balance.
(LO 2, 4, 6, 7)
Problems: Set B 91
In addition to the accounts identifi ed above, the chart of accounts shows No. 112 Accounts Receivable, No. 136 Prepaid Rent, No. 400 Service Revenue, No. 429 Rent Revenue, No. 610 Advertising Expense, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.
Instructions
(a) Enter the beginning balances in the ledger as of April 1. Insert a check mark (✓) in the reference column of the ledger for the beginning balance.
(b) Journalize the April transactions.
(c) Post the April journal entries to the ledger. Assume that all entries are posted from page 1 of the journal.
(d) Prepare a trial balance on April 30, 2017.
(d) Trial balance totals
€35,516
P2-1B Surepar Disc Golf Course was opened on March 1 by Bill Arnsdorf. The following selected events and transactions occurred during March:
Mar. 1 Invested €60,000 cash in the business in exchange for ordinary shares.
3 Purchased Lee’s Golf Land for €38,000 cash. The price consists of land
€23,000, shed €9,000, and equipment €6,000. (Make one compound entry.) 5 Advertised the opening of the driving range and miniature golf course, paying
advertising expenses of €1,300.
6 Paid cash €3,000 for a one-year insurance policy.
10 Purchased golf discs and other equipment for €1,050 from Parton Company payable in 30 days.
18 Received €440 in cash for golf fees recognized.
19 Sold 100 coupon books for €18 each. Each book contains 4 coupons that enable the holder to play one round of disc golf.
25 Declared and paid an €800 cash dividend.
30 Paid salaries of €250.
30 Paid Parton Company in full.
31 Received €200 cash for fees recognized.
Surepar uses the following accounts: Cash, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Unearned Service Revenue, Share Capital—Ordinary, Dividends, Service Revenue, Advertising Expense, and Salaries and Wages Expense.
Instructions
Journalize the March transactions.
P2-2B Judi Dench is a licensed dentist. During the fi rst month of the operation of her business, the following events and transactions occurred.
April 1 Shareholders invested £40,000 cash in exchange for ordinary shares.
1 Hired a secretary-receptionist at a salary of £600 per week payable monthly.
2 Paid offi ce rent for the month £1,400.
3 Purchased dental supplies on account from Halo Company £5,200.
10 Performed dental services and billed insurance companies £6,600.
11 Received £1,000 cash advance from Rich Welk for an implant.
20 Received £2,100 cash for services performed for Phil Stueben.
30 Paid secretary-receptionist for the month £2,400.
30 Paid £1,900 to Halo Company for accounts payable due.
Judi uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 311 Share Capital—Ordinary, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.
Instructions
(a) Journalize the transactions.
(b) Post to the ledger accounts.
(c) Prepare a trial balance on April 30, 2017.
Journalize a series of transactions.
(LO 2, 4)
Journalize transactions, post, and prepare a trial balance.
(LO 2, 4, 6, 7)
(c) Trial balance totals
£53,000