Rhoades Tax Services began business on December 1, 2015. Its December transactions are as follows. Rhoades invested $20,000 in the business in exchange for common stock. Dec C 2 Paid $1,200 cash for December rent to Bomba Realty. Purchased $1,080 of supplies 2 on account. Purchased $9,500 of office equipment; paying $4,700 cash with the balance due in 30 days. Paid $1,080 cash on account for supplies purchased December 2 14 Paid $900 cash for assistant's wages for 2 weeks' work. Performed consulting services for $3,000 cash 20 28 Paid $900 cash for assistant's wages for 2 weeks' work. 30 Billed clients $7,200 for December consulting services. 31 Paid $1,800 cash for dividends. a (1). Record these transactions using the financial statement effects template. (Adjusting entries will be recorded in Part B - a (2).) Balance Sheet Cash Noncash Contributed Earned Capital Capital Transaction Asset Assets Liabilities + + + 12/1 12/2 a 12/2 b 12/3 12/8 12/14 12/20 12/28 12/30 12/31 Totals + Income Statement Revenues Expenses Net Income c. Record the above transactions in journal entry form and post these entries to their T-accounts (key numbers in T-accounts by date). GENERAL JOURNAL Debit Credit Date Description 12/1 To record investment in the business. 12/2 a To record December rent payment 12/2 b To record purchases of various supplies on account 12/3 Accounts Payable To record purchase of office equipment. 12/8 To record payments on account. 12/14 To record payment of assistant's wages 12/20 To record cash received for services 12/28 To record payment of assistant's wages. 12/30 To record customers billed for services. 12/31 To record dividends issued and paid. d. Prepare an unadjusted trial balance at December 31, 2015 RHOADES TAX SERVICES Unadjusted Trial Balance December 31, 2015 Debit Credit Cash Fees Receivable Supplies Office Equipment Accounts Payable Common Stock Retained Earnings Consulting Revenue Rent Expense Wages Expense Rhoades Tax Services began business on December 1, 2015. Its December transactions are as follows. Rhoades invested $20,000 in the business in exchange for common stock. Dec C 2 Paid $1,200 cash for December rent to Bomba Realty. Purchased $1,080 of supplies 2 on account. Purchased $9,500 of office equipment; paying $4,700 cash with the balance due in 30 days. Paid $1,080 cash on account for supplies purchased December 2 14 Paid $900 cash for assistant's wages for 2 weeks' work. Performed consulting services for $3,000 cash 20 28 Paid $900 cash for assistant's wages for 2 weeks' work. 30 Billed clients $7,200 for December consulting services. 31 Paid $1,800 cash for dividends. a (1). Record these transactions using the financial statement effects template. (Adjusting entries will be recorded in Part B - a (2).) Balance Sheet Cash Noncash Contributed Earned Capital Capital Transaction Asset Assets Liabilities + + + 12/1 12/2 a 12/2 b 12/3 12/8 12/14 12/20 12/28 12/30 12/31 Totals + Income Statement Revenues Expenses Net Income c. Record the above transactions in journal entry form and post these entries to their T-accounts (key numbers in T-accounts by date). GENERAL JOURNAL Debit Credit Date Description 12/1 To record investment in the business. 12/2 a To record December rent payment 12/2 b To record purchases of various supplies on account 12/3 Accounts Payable To record purchase of office equipment. 12/8 To record payments on account. 12/14 To record payment of assistant's wages 12/20 To record cash received for services 12/28 To record payment of assistant's wages. 12/30 To record customers billed for services. 12/31 To record dividends issued and paid. d. Prepare an unadjusted trial balance at December 31, 2015 RHOADES TAX SERVICES Unadjusted Trial Balance December 31, 2015 Debit Credit Cash Fees Receivable Supplies Office Equipment Accounts Payable Common Stock Retained Earnings Consulting Revenue Rent Expense Wages Expense
