Scott Jameson opened a translation business on January 2, 2014. During the first month of operations, the business completed the following transactions:
Jan. 2 The business received $60,000 cash from Jameson, which was deposited in a business bank account entitled Jameson Translation Service.
3 Purchased supplies, $750, and furniture, $2,800, on account.
3 Paid January's rent expense with cash, $1,100.
4 Performed translation services for a client and received cash, $2,250.
7 Paid $38,000 cash to acquire land for a future office site.
11 Translated a brochure for a client and billed the client $1,200.
15 Paid secretary salary, $975 cash.
16 Paid cash for the furniture purchased January 3 on account.
18 Received partial payment from a client on account, $600 cash.
19 Translated legal documents for a client on account, $11,350.
22 Paid cash for the water and electricity bills, $300.
29 Received $2,700 cash for translation for a client in an overseas business transaction.
31 Paid secretary salary, $975 cash.
31 Jameson withdrew $12,000 cash for personal use.
Required
Open the following T-accounts: Cash; Accounts Receivable; Supplies;
Furniture; Land; Accounts Payable; Scott Jameson, Capital; Scott Jameson, Withdrawals;
Translation Revenue; Rent Expense; Salary Expense; Utilities Expense.
1. Record each transaction in the journal with an explanation, using the account titles given. Key each transaction by date.
2. Post the transactions to the ledger using T-accounts, using transaction dates in the ledger. Label the balance of each account Bal., as shown in the chapter.
3. Prepare the trial balance of Jameson Translation Service at January 31, 2014.
4. How will what you have learned in this problem help you manage a business?