The journal of Alert Defensive Driving includes the following entries for May 2006.

Requirements 

1. Describe each transaction.

2. Set up T-accounts using the following account numbers: Cash, 110 ; Accounts Receivable, 120; Supplies, 130; Accounts Payable, 210; Betty Sawyer, Capital, 310; Service Revenue, 410; Rent Expense, 510; Advertising Expense, 520; Fuel Expense, 530.

3. Post to the accounts. Write dates and journal references in the accounts, as illustrated in Exhibit 2-13,. Compute the balance of each account after posting.

4. Prepare the trial balance of Alert Defensive Driving at May 31, 2006. 

Exhibit 2-13

Transcribed Image Text:

Date Journal Entry: Accounts and Explanation Post Ref. Debit Page 5 Credit May 2 Cash 20,000 Betty Sawyer, Capital 20,000 9 Supplies 200 Accounts Payable 200 11 Accounts Receivable 2.600 Service Revenue 2.600 14 Rent Expense 3,200 Cash 3.200 23 22 Accounts Payable 300 Cash 300 25 Advertising Expense 400 Cash 400 27 Cash 1,400 Accounts Receivable 1,400 31 Fuel 100 Fuel Expense 100