Angela McWharton opened an on-call nursing services business.

She rented a small office space and pays a part-time worker to answer the telephone. Her chart of accounts is shown below.

MeWharton’s transactions for the first month of business are as follows:

Required:

1. Journalize the transactions for January using the modified cash basis and page 1 of a combination journal. Set up special columns for Nursing Care Fees (credit), Wages Expense (debit), and Transportation Expense (debit). ;
2. Determine the cash balance as of January 12 (using the combination journal).
3. Prove the combination journal.
4. Set up general ledger accounts from the chart of accounts and post the transactions from the combination journal.
5. Prepare a trial balance.

Transcribed Image Text:

Angela McWharton Nursing Services Chart of Accounts Revenues Assets 101 Cash 401 Nursing Care Fees 142 Office Supplies 181 Office Equipment Expenses 511 Wages Expense Liabilities 512 Advertising Expense 202 Accounts Payable 521 Rent Expense 525 Telephone Expense Owner's Equity 526 Transportation Expense 311 Angela McWharton, Capital 312 Angela McWharton, Drawing 313 Income Summary 533 Electricity Expense 549 Miscellaneous Expense