Question
Requirement 1. Record each transaction in the journal, using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Furniture; Building; Land; Accounts Payable;
Requirement 1. Record each transaction in the journal, using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Furniture; Building; Land; Accounts Payable; Utilities Payable; Notes Payable;
Date | Accounts | Post. Ref. | Debit | Credit | ||||
Jan. 1 |
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Part 2
Jan.
3: Purchased office supplies,
$1,400,
and furniture,
$1,300,
on account.
Date | Accounts and Explanation | Post. Ref. | Debit | Credit | ||||
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| Jan. 3 |
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Part 3
Jan.
4: Performed legal services for a client and received
$1,600
cash.
Date | Accounts | Post. Ref. | Debit | Credit | ||
Jan. 4 |
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Part 4
Jan.
7: Purchased a building with a market value of
$140,000,
and land with a market value of
$20,000.
The business paid
$40,000
cash and signed a note payable to the bank for the remaining amount.
Jan.
7: Purchased a building with a market value of
$140,000,
and land with a market value of
$20,000.
The business paid
$40,000
cash and signed a note payable to the bank for the remaining amount.
Date | Accounts and Explanation | Post. Ref. | Debit | Credit | ||
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| Jan. 7 |
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Requirement 2. The following four column accounts have been opened for each of the accounts. Cash, 101; Accounts Receivable, 111; Office Supplies, 121; Prepaid Insurance, 131; Furniture, 141; Building, 151; Land, 161; Accounts Payable, 201; Utilities Payable, 211; Notes Payable, 221;
Murray,
Capital, 301;
Murray,
Withdrawals, 311; Service Revenue, 411; Salaries Expense, 511; Rent Expense, 521; and Utilities Expense, 531. Post the transactions to four-column accounts in theledger, using dates, account numbers, journal references, and posting references. Assume the journal entries were recorded on page 1 of the journal. (Compute the new balance for each account after posting the transaction.)
CASH |
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| Account No. 101 | |
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| Balance | |
Date | Item | Post. Ref. | Debit | Credit | Debit | Credit |
2017 |
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Jan. 1 |
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Jan. 4 |
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Jan. 7 |
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Jan. 15 |
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Jan. 16 |
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Jan. 18 |
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Jan. 29 |
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Jan. 30 |
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Jan. 30 |
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Jan. 31 |
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Jan. 31 |
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Taylor Murray, Attorney | |||
Trial Balance | |||
January 31, 2017 | |||
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Account Title | Debit | Credit | |
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Total |
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