Cross Country Movers had the following account balances, in random order, on December 15, 2014 (all accounts have their "normal" balances):

The following events took place during the final days of the year:
Dec. 16 The accountant discovered that an error had been made in posting an entry to the Moving Fees Income account. The entry was correctly journalized but $2,400 was accidentally posted as $4,200 in the account.
17 Moved a customer's goods to Cross Country's rented warehouse for storage. The moving fees were $4,000. Storage fees are $600 per month. The customer was billed for one month's storage and the moving fees.
18 Collected a $15,000 note owed to Cross Country Movers and collected interest income of $1,800 cash.
19 Used a company cheque to pay for Martinez's hydro bill in the amount of $400.
21 Purchased storage racks for $12,000. Paid $3,600 cash, provided moving services for $1,500, and promised to pay the balance in 60 days.
23 Collected $3,000 cash; $2,600 of this was for moving goods on December 15 (recorded as an account receivable at that time) and the balance was for storage fees for the period of December 16 to 23.
24 Cross Country Movers paid cash of $18,000 owing on the mortgage.
27 Martinez withdrew $5,000 cash for personal use.
29 Provided moving services to a lawyer for $2,400. The lawyer paid Cross Country
Movers $1,500 and provided legal work for the balance.
31 Martinez, the owner of Cross Country Movers, sold 2,000 shares he held in Brandon Haulage Inc. for $12,000.
Required
1. Where appropriate, record each transaction from December 16 to 31 in the journal. Include an explanation for each journal entry.
2. Post entries in T-accounts and calculate the balance of each one.
3. Prepare the trial balance of Cross Country Movers at December 31, 2014.

Transcribed Image Text:

Moving fees income. Accounts receivable. Rent expense.. H. Martinez, capital. Office supplies expense. Mortgage payable. Salaries expense. Insurance expense.. $7,200 57,900 45,000 2,400 9,600 33,000 12,300 132,200 $261,600 Cash. 17,400 Storage fees income 47,100 Notes receivable. 53,000 Utilities expense. 2,100 Office supplies. 39,000 Accounts payable. 161,100 Office equipment.. 6,300 Moving equipment .