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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

Part 2

Jan.

3: Purchased office supplies,

$1,400,

and furniture,

$1,300,

on account.

Date

Accounts and Explanation

Post. Ref.

Debit

Credit

Jan. 3

Part 3

Jan.

4: Performed legal services for a client and received

$1,600

cash.

Date

Accounts

Post. Ref.

Debit

Credit

Jan. 4

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

Jan. 7

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

Account No. 101

Balance

Date

Item

Post. Ref.

Debit

Credit

Debit

Credit

2017

Jan. 1

Jan. 4

Jan. 7

Jan. 15

Jan. 16

Jan. 18

Jan. 29

Jan. 30

Jan. 30

Jan. 31

Jan. 31

Taylor Murray, Attorney

Trial Balance

January 31, 2017

Balance

Account Title

Debit

Credit

Total

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