Journalizing, posting, and trial balance preparation (Learning Objectives 3 & 4) 20–25 min.

Tucker Stevens opened an accounting firm on October 1, 2014. During the month of October, the business completed the following transactions:

Requirements 1. Open, or set up, the following T-accounts: Cash, Accounts Receivable, Supplies, Furniture, Land, Accounts Payable, Common Stock, Dividends, Service Revenue, Salaries Expense, and Rent Expense.
2. Journalize transactions. Explanations are not required.
3. Post the transactions to the T-accounts, using transaction dates as posting references.
4. Calculate the balance in each account at October 31, 2014.
5. Prepare the trial balance for Stevens & Associates, Inc., at October 31, 2014.AppendixLO1

Transcribed Image Text:

Oct 1 The business sold $50,000 of common stock to open the firm, Stevens & Associates, Inc. Purchased supplies, $300, and furniture, $1,300, on account. 5 Performed accounting service for a client and received cash, $1,800. Paid cash to acquire land for a future office site, $25,000. 11 Prepared tax returns for a client on account, $2,500. Paid assistant's salary, $600. 16 Paid for the furniture purchased October 3 on account. Received $300 cash for accounting services performed. Billed a client for $1,700 of accounting services. 28 Received $400 from client on account. 31 Paid secretary's salary, $600. 31 Paid rent expense, $1,500. 31 Paid $1,800 of dividends.