and Learning Objectives 3 P230A Journalizing transactions po

and Learning Objectives 3, P230A Journalizing transactions, posting journal entries to T-accounts, and preparing a trial balance Ann Simpson started her practice as a design consultant on September 1, 20 During the first month of operations, the business completed the follonaing , Total Debits 558.300 Received $48,000 cash and issued common stock to Simpson. 4 Purchased office supplies, $1,200, and furniture, $1,300, on account Sep. 1 6 7 10 Performed services for a law firm and received $1,900 cash. Paid $18,000 cash to acquire land to be used in operations Performed services for a hotel and received its promise to pay the $1,200 within one week Paid for the furniture purchased on September 4 on account. Paid assistant\'s semimonthly salary. $1,500. Received cash on account, $1,000. 14 15 17 20 25 28 29 Prepared a design for a school on account, 5650. Received $ Received $2,900 2,100 cash for design services to be performed in October cash for consulting with Plummer & Gordon. Paid $600 cash for a 12-month insurance policy starting on October 1 insurance id assistant\'s semimonthly salary. $1,500 Paid monthly rent expense, $6 Received a bill for utilities, $350. The bill will be paid next month. Paid cash dividends of $3,700. 30 00. 30 Requirements 1. Record each transaction in the journal using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance Accounts Payable, Urilivies Payable; Unearned Revenue, Common Stock Dividends; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required 2. Open a T-account for each of the accounts 3· Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts Label the balance of each account Bal 4. Prepare the trial balance of Ann Simpson, Designer, as of September 30, 2018.

Solution

Date Account Titles Debit Credit Sep. 1 Cash 48000 Common stock 48000 4 Office supplies 1200 Furniture 1300 Accounts Payable 2500 6 Cash 1900 Service revenue 1900 7 Land 18000 Cash 18000 10 Accounts receivable 1200 Service revenue 1200 14 Accounts Payable 1300 Cash 1300 15 Salaries expense 1500 Cash 1500 17 Cash 1000 Accounts receivable 1000 20 Accounts receivable 650 Service revenue 650 25 Cash 2100 Unearned revenue 2100 28 Cash 2900 Service revenue 2900 29 Prepaid insurance 600 Cash 600 30 Salaries expense 1500 Cash 1500 30 Rent expense 600 Cash 600 30 Utilities expense 350 Utilities Payable 350 30 Dividends 3700 Cash 3700 Cash Accounts Receivable Office Supplies Sep. 1 48000 18000 Sep. 7 Sep. 10 1200 1000 Sep. 17 Sep. 4 1200 Sep. 6 1900 1300 Sep. 14 Sep. 20 650 Sep. 17 1000 1500 Sep. 15 Sep. 25 2100 600 Sep. 29 Sep. 28 2900 1500 Sep. 30 600 Sep. 30 3700 Sep. 30 Bal. 28700 Bal. 850 Bal. 1200 Prepaid Insurance Land Furniture Sep. 29 600 Sep. 7 18000 Sep. 4 1300 Bal. 600 Bal. 18000 Bal. 1300 Accounts Payable Utilities Payable Unearned Revenue Sep. 14 1300 2500 Sep. 4 Sep. 30 350 2100 Sep. 25 Bal. 1200 Bal. 350 Bal. 2100 Common Stock Dividends Service Revenue 48000 Sep. 1 Sep. 30 3700 1900 Sep. 6 1200 Sep. 10 650 Sep. 20 2900 Sep. 28 Bal. 48000 Bal. 3700 Bal. 6650 Salaries Expense Rent Expense Utilities Expense Sep. 15 1500 Sep. 30 600 Sep. 30 350 Sep. 30 1500 Bal. 3000 Bal. 600 Bal. 350 Ann Simpson, Designer Trial Balance As of September 30, 2018 Account Name Debit Credit Cash 28700 Accounts receivable 850 Office supplies 1200 Prepaid insurance 600 Land 18000 Furniture 1300 Accounts payable 1200 Utilities payable 350 Unearned revenue 2100 Common stock 48000 Dividends 3700 Service revenue 6650 Salaries expense 3000 Rent expense 600 Utilities expense 350 Total $ 58300 58300