Barbara Miracle, Certified Public Accountant, operates as a professional corporation (PC). The business completed these transactions during the first part of August 2016:
Aug 2 Received $10,000 cash from Miracle, and issued common stock to her.
2 Paid monthly office rent, $600.
3 Paid cash for a Dell computer, $2,700, with the computer expected to remain in service for five years.
4 Purchased office furniture on account, $4,500, with the furniture projected to last for five years.
5 Purchased supplies on account, $800.
9 Performed tax services for a client and received cash for the full amount of $1,400.
12 Received and paid utility expenses, $300.
18 Performed consulting services for a client on account, $ 1,900.
Requirements
1. Journalize the transactions for Barbara Miracle, Certified Public Accountant. Explanations are not required.
2. Post to the T-accounts. Key all items by date and determine the ending balance in each account. Denote an account balance on August 18, 2016, as Bal.
3. Using Excel, prepare a trial balance at August 18, 2016. In the Serial Exercise of Chapter 3, we add transactions for the remainder of August and will require a trial balance at August 31.