Principles of Accounting 1 Chapter 2 Homework

Cynthia Jackson, an accountant, organized Jackson and Associates on September 1, 2015. During the month, Jackson and Associates completed the following transactions:

a. Issued capital stock to Cynthia Jackson in exchange for $75,000. b. Paid advertising expenses using cash, $2,900. c. Billed customers for fees earned for providing accounting services, $22,800. d. Purchase office supplies on account, $6,500. e. Paid office salaries, $4,200. f. Paid rent expense for the month, $3,800. g. Received cash from customers on account, $20,000. h. Paid creditors on account, $5,500. i. Paid dividends, $1,800. j. Determined that the cost of supplies on hand was $3,500; therefore, the cost of supplies used was $3,000.

Instructions 1. Journalize the entries for transactions (a) through (j). 2. Prepare T accounts using all accounts utilized to make the journal entries. Post the journal entries to these T accounts. Determine the account balances, after all posting is complete. 3. Prepare an unadjusted trial balance as of September 30, 2015. 4. Determine net income and net effect on retained earnings for September.