Acct 110 Chapter 4 Homework Handout Problem 1 Esther Chai owns Chai's Accounting Services. She provides accounting services for small businesses and charges her clients consulting fees for the services she performs for them. Esther has a part-time accounting clerk who enters the information into the journal and ledger. The company's chart of accounts is show to the right. Instructions Assets i 100 Cash 120 Accounts Receivable 130 Office Supplies 140 Computer Equipment 145 Computer Software Liabilities 200 Accounts Payable Owner's Equity 300 E. Chai, Capital 310 E. Chai, Drawing Revenue 400 Consulting Fees Expenses 510 Wages Expense 520 Rent Expense 530 Utilities Expense 1. Journalize the following transactions in the general journal on the next page. Important: only use the accounts in Esther's chart of accounts - don't make up new ones. 2. As you journalize, post amounts to the t-accounts on the page that follows the journal. Ignore posting references. Remember, t-accounts are the short version of general ledger accounts. 3. After recording the transactions, foot and balance the t-accounts. Don't ignore this step- I want to see that you can foot and balance an account. 4. Create a trial balance for Esther Chai's business for the month of March. List your accounts in standard order. March 1 Because the company's cash was getting low, Esther Chai invested $4,500 additional cash in her business. Purchased office supplies on account, $750. Completed consulting work for a client, who agreed to pay the $2,750 fee by the end of the month. Purchased new computer software, $825. Paid wages to the accounting clerk for part-time work, $700. 6 7 Paid office rent for the month, $900. 14 17 20 23 Paid utilities for the month, $180. 28 30 31 Owner withdrew cash for personal use, $200. Received cash for consulting fees recorded on March 14, $2,750. Purchased a new computer for $400 cash and $600 on account.