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3.12 part b-c a. Prepare journal entries, including explannations, for the above uransactions. b. Post each entry to the appropriace ledger accounts (use the T
3.12 part b-c
a. Prepare journal entries, including explannations, for the above uransactions. b. Post each entry to the appropriace ledger accounts (use the T account format illustrated in c. Prepare a trial balance dated September 30, 2009. Assume accounts with zero balances are not Exhibit 3-8 on page 110). included in the trial balance. Herruld Consulting incorporated on February 1,2009. The company engaged in the following transaction during ius first month of operations: Feb. 1 Isoued capital stock in exchenge for $750,000cssh. Feb. 5 Borrowed $50,000 from the bank by irsuing a nole peyble. Feb. Purchased land, building, and oftice oquipment for 5600,000 . The value of the land was $100,000, the value of the building was 5450,000 , and the value of the oftice equipment. was $50,000. The company paid $300,000 cash and issued a note payable for tho balance. Feb. 11 Purchaced office supplies for 5600 on account. The supplies will last for several months. Feh, 14 Piid the focal newspaper $400 for a fuil-page advertisement. The ad will appear in priat on February 18. Teb. 20 Several of the inkjet printer cartridges that Herrold purchased on February 11. were. defective. The cartridges were returned and the office supply store reduced Herrold's outstanding balance by $100. Feb. 22 Performed consulting sarvices for $6,000cash. Feb. 24 Billed clients $9,000. Feb. 25 Paid salaries of $5,000. Feb. 28 Paid the entire outstanding balance uwed for office supplies purchased on February 11. A partial list of the sccount tilles used by the company inclides: A.- Prepere joumal entries, including explanations, for the above transactions. b. Post each entry to the appropriate ledger accounts (use the T account format as illustrated in Exhibit 3-8 on page 110). c. Prepare a trial balance dated February.28. 2009. Assume accounts with zero balances are noi included in the trial balance. Listed below are descriptions of six transactions, followed by a table listing six unique combination of financial statement effects ( l is for increase, D is for decrease, and NE is for no effect). In the blank space to the left of each transaction description, place the appropriate lettor from the tible thas indicales the effocts of that transaction on the various elements of the financial statements. 1. Purchaced Inachinery for $5,000, paying $1,000 eash and issuing a $4,000 note payable for the balance. 2. Billed clients $16,000 on account. 3. Recorded a $500 maintenance expense of which $100 was paid in cash and the remaining amount was due in 30 days. 4. Paid an outstanding account payable of $400. 5. Recorded monthly utilities costs of $300. The entire amount is due in 20 days. 6. Declared a $10,000 dividend to be distributed in 60 daysStep by Step Solution
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