P2-2A Jane Kent is a licensed CPA. During the first month of operations of her business, Jane Kent, Inc., the following events and transactions occurred. May 1 Stockholders invested $25,000 cash in exchange for common stock. 2 Hired a secretary-receptionist at a salary of $2,000 per month. 3 Purchased $2,500 of supplies on account from Read Supply Company. 7 Paid office rent of $900 cash for the month. 11 Completed a tax assignment and billed client $2,100 for services provided. 12 Received $3,500 advance on a management consulting engagement. 17 Received cash of $1,200 for services completed for H. Arnold Co. 31 Paid secretary-receptionist $2,000 salary for the month. 31 Paid 40% of balance due Read Supply Company. Jane uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies,No. 201 Accounts Payable,No. 205 Unearned Revenue,No. 311 Common Stock,No. 400 Service Revenue, No. 726 Salaries Expense, and No. 729 Rent Expense. Journalize transactions, post, and prepare a trial balance. (SO 2, 4, 6, 7) Instructions (a) Journalize the transactions. (b) Post to the ledger accounts. (c) Prepare a trial balance on May 31, 2008.

Axia College Material Appendix C Journalizing, Posting, and Preparing a Trial Balance Journalizing the Transactions Use this template to journalize the transactions for Jane Kent, Inc. The first two lines are completed for you. You might not require all the lines provided. DATE May 1 GENERAL JOURNAL ACCOUNT TITLE AND EXPLANATION Cash Common Stock REF. DEBIT 101 25,000 311 J1 CREDIT 25,000 a) General Journal Axia College Material Appendix C Journalizing, Posting, and Preparing a Trial Balance Posting the Accounts Post the ledger accounts for Jane Kent, Inc. on this General Ledger. The first line of the cash account is completed for you. Complete the remaining lines in the cash account, and the other eight accounts. You have nine accounts altogether. GENERAL LEDGER Cash DATE EXPLANATION 1-May-2008 Accounts Receivable DATE EXPLANATION Supplies DATE REF. J1 REF. No. 101 DEBIT CREDIT BALANCE 25,000 25,000 DEBIT No. 112 CREDIT BALANCE EXPLANATION REF. DEBIT No. 126 CREDIT BALANCE Accounts Payable DATE EXPLANATION REF. DEBIT No. 201 CREDIT BALANCE Unearned Revenue DATE EXPLANATION REF. DEBIT No. 205 CREDIT BALANCE Common Stock DATE EXPLANATION REF. DEBIT No. 311 CREDIT BALANCE Service Revenue DATE EXPLANATION REF. DEBIT No. 400 CREDIT BALANCE Salaries Expense DATE EXPLANATION REF. DEBIT No. 726 CREDIT BALANCE DEBIT No. 729 CREDIT BALANCE Rent Expense DATE EXPLANATION REF. b) Ledger Accounts Axia College Material Appendix C Journalizing, Posting, and Preparing a Trial Balance Preparing a Trial Balance Prepare a trial balance dated May 31, 2008 for Jane Kent, Inc. Debit and Credit totals are double-underlined. You can place summation formulas in F17 and G17 to compute debit and credit totals. Otherwise, you can compute totals using a calculator, then enter totals directly. JANE KENT, INC. Trial Balance 31-May-08 DEBIT Cash Accounts Receivable Supplies Accounts Payable Unearned Revenue Common Stock Service Revenue Salaries Expense Rent Expense Totals CREDIT 25,000 3,500 2,500 1,000 3,500 25,000 3,300 2,000 900 28,900 37,800 c) Trial Balance