On October 1, 20X1, Helen Kennedy opened an advertising agency. She plans to use the chart of accounts listed below. INSTRUCTIONS 1. Journalize the transactions. Number the journal page 1, write the year at the top of the Date column, and include a description for each entry. 2. Post to the ledger accounts. Before you start the posting process, open accounts by entering account names and numbers in the headings. Follow the order of the accounts in the chart of accounts. ASSETS 101 Cash 111 Accounts Receivable 121 Supplies 141 Office Equipment 151 Art Equipment LIABILITIES 202 Accounts Payable OWNER'S EQUITY 301 Helen Kennedy, Capital 302 Helen Kennedy, Drawing REVENUE 401 Fees Income EXPENSES 511 Office Cleaning Expense 514 Rent Expense 517 Salaries Expense 520 Telephone Expense 523 Utilities Expense DATE TRANSACTIONS Oct. 1 Helen Kennedy invested $70,000 cash in the business. 2 Paid October office rent of $4,000; issued Check 1001. Purchased desks and other office furniture for $18,000 from Office Furniture Mart, Inc.; received Invoice 6704 5 6 Issued Check 1002 for $4,100 to purchase art equipment. 7 Purchased supplies for $1,670; paid with Check 1003. 10 12 Issued Check 1004 for $800 for office cleaning service. Performed services for $4,200 in cash and $1,800 on credit. (Use a compound entry.) Returned damaged supplies for a cash refund of $300. Purchased a computer for $3,000 from Office Furniture Mart, Inc., Invoice 7108; issued Check 1005 for a $1,75 15 18 20 Issued Check 1006 for $9,500 to Office Furniture Mart, Inc., as payment on account for Invoice 6704. 26 Performed services for $4,800 on credit. 27 Paid $375 for monthly telephone bill; issued Check 1007. 30 Received $4,200 in cash from credit customers. 30 Issued Check 1008 to pay the monthly utility bill of $1,080. Issued Checks 1009-1011 for $9,000 for salaries. 30 Analyze: What is the balance of account 202 in the general ledger