Record transactions and prepare a trial balance (Learning Objectives 3 & 4)

15–20 min.

Baily Realty, Inc., had the following transactions for the month of March 2014.

The following T-accounts have been set up for Baily Realty, Inc., with their beginning balances as of March 1, 2014.
Cash Mar 1 111 5,000 Accounts Receivable Mar 1 112 2,800 1 Accounts Payable 211 Supplies Mar 1 113 550 Mar 1 400 2 Notes Payable 212 Mar 1 9,000 Office Furniture Mar 1 114 2,900 Building Mar 1 116 30,000 3 Common Stock 311 Mar 1 30,750 14 Service Revenue 411 Mar 1 2,600 16 Rent Expense Mar 1 511 1,500.

Requirements 1. Journalize the transactions for the month of March. Explanations are not required.
2. Post the journal entries to the appropriate T-accounts. Identify all items by date.
3. Calculate the balance of each account at March 31, 2014.
4. Prove that the total of all the debit balances equals the total of all of the credit balances by preparing a trial balance at March 31, 2014.AppendixLO1

Transcribed Image Text:

Mar 2 Paid Rent Expense, $1,000. 4 Performed service for a customer and received cash, $1,100. 8 Purchased supplies on account, $100. 11 Received cash from credit customers on account, $2,600. Sold an additional $45,000 of Common Stock. 19 Paid $450 on account. 27 Performed service for customers on account, $3,300. Made a payment on the Notes Payable, $6,000.