Problem 2

The trial balance of Harper Service Center on March 1, 2019, lists the entitys assets, liabilities, and equity on that date.

Account title

balance

debit

credit

Cash

Accounts receivable Accounts payable Harper, capital Total

$26 000 4 500

$30 500

$2 000 28 500 $30 500

During March, the business engaged in the following transactions:

a. Borrowed $55,000 from the bank and signed a note payable in the name of the business. b. Paid cash of $30,000 to acquire land.

c. Performed service for a customer and received cash of $5,500.

Problem 2 The trial balance of Harper Service Center on March 1, 2019, lists the entity's assets, liabilities and equity on that date. Account title balance debit dit Cash $26 000 4 500 Accounts receivable Accounts payable S2 000 , pital 28 500 Total $30 500 S30 500 During March, the business engaged in the following transactions Borrowed $55,000 from the bank and signed a note payable in the name of the basiness b. Paid cash of $30,000 to acquire land. c. Perfomed service for a customer and received cash of S5,500. d. Purchased supplies on account, $600. e. Performed customer service and eamed revenue on account, $3,400 f. Paid S1,100 on account. g. Paid the following cash expenses: salaries, $2,000; rent, $1,200; and interest, $500. h. Received S3,000 on account. i. Received a $260 utility bill that will be paid next week The owner invest cash of S1,500 to the company Requirements Open the following accounts, with the balances indicated, in the ledger of Harper Service Center. Use the T-account fommat Assets Cash, $26,000; Accounts receivable, $4,500; Supplies, no balanceLand, no balance Liabilities Accounts payable, $2,000; Note payable, no balance Owner's equity-Harper, capital, $28,500; Harper, drawing, no balance Revenue Service revenue, no balance Expenses-(ncne have balances) Salary expense, Rent expense, Utilities expense, Interest expense ()Journalize cach transaction. Key joumal entries by transaction letter.(10 marks) (2) Post to the ledger.(Smarks) (3) Prepare the trial balance of Harper Service Center at March 31, 2014.(5marks)