e. Paid 50,000 mortgage payment, of which 30,000 represents interest expense.

f. Paid salaries expense of 120,000.

g. Paid installment of 10,000 on note.

Required:

1. Make journal entries to record each listed transaction. (Omit explanation)
2. Set up T-accounts, with the proper account balances at January 1, 2017, post the journal entries to the T-accounts, and make a trial balance for Gammon Corporation at December 31,2017.
3. Interpretative Question: If the debit and credit columns of the trial balance are in balance, does this mean that no errors have been made in journalizing the transactions? Explain.

explanati P 3-2 Journal Entries and Trial Balance As of January 1, 2017, Gammon Corporation had the following balances in its general ledger: LO 3 LO4 Debits Credits Cash ... 'S 63,000 Accounts Receivable . . 147,000 Office Building . .... 416,000 Accounts Payable .. $ 33,000 Mortgage Payable . . 276,000 Notes Payable. . . 137,000 Capital Stock . .. 115,000 Retained Earnings. 65,000 Totals . .. $626,000 $626,000 Gammon had the following transactions during 2017. All expenses were paid in cash, unless otherwise stated. a. Collected $42,000 of receivables. b. Accounts Payable as of January 1, 2017, were paid off. C. Paid utilities of $12,600. d. Provided services for $370,000, 90% for cash and 10% for credit