Problem 2-5 Transaction Analysis, General Journal, Ledger Accounts, and Trial Balance

Nordtown Corporation is a marketing firm. The corporation's trial balance on August 31, 2014, follows.

Nordtown Corporation
Trial Balance
August 31, 2014
Cash (111)	10,590
Accounts Receivable (113)	5,500
Office Supplies (116)	610
Office Equipment (146)	4,200
Accounts Payable (212)			2,600
Common Stock (311)			12,000
Retained Earnings (312)			6,300
	20,900		20,900

During the month of September, the corporation completed the following transactions:

Sept. 2

Paid rent for September, $650.

3

Received cash from customers on account, $2,300.

7

Ordered supplies, $380.

10

Billed customers for services provided, $2,800.

12

Made a payment on accounts payable, $1,300.

14

Received the supplies ordered on September 7 and agreed to pay for them in 30 days, $380.

17

Discovered some of the supplies were not as ordered and returned them for full credit, $80.

19

Received cash from a customer for services provided, $4,800.

24

Paid the utility bill for September, $250.

26

Received a bill, to be paid in October, for advertisements placed in the local newspaper during the month of September to promote Nordtown Corporation, $700.

29

Billed a customer for services provided, $2,700.

30

Paid salaries for September, $3,800.

30

Declared and paid a dividend of $800.

2. Enter the August 31, 2014, account balances from the trial balance. Post the journal entries to the ledger accounts. Be sure to make appropriate references in the journal and ledger as you post. If a box does not require an amount, leave it blank.

ACCOUNT		Cash					ACCOUNT NO.	111
	DATE		ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
							DEBIT	CREDIT
	2014
	Aug.	31	Balance
	Sept.	2
		3
		12
		19
		24
		30
		30