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.

d. Purchased supplies on account, $600.

e. Performed customer service and earned revenue on account, $3,400.

f. Paid $1,100 on account.

g. Paid the following cash expenses: salaries, $2,000; rent, $1,200; and interest, $500. h. Received $3,000 on account.

i. Received a $260 utility bill that will be paid next week.

j. The owner invest cash of $1,500 to the company .

Requirements

Open the following accounts, with the balances indicated, in the ledger of Harper Service Center. Use the T-account format.

AssetsCash, $26,000; Accounts receivable, $4,500; Supplies, no balance;Land, no balance LiabilitiesAccounts payable, $2,000; Note payable, no balance

Owners equityHarper, capital, $28,500; Harper, drawing, no balance

RevenueService revenue, no balance

Expenses(none have balances) Salary expense, Rent expense, Utilities expense, Interest expense

(1) Journalize each transaction. Key journal entries by transaction letter.

(2) Post to the ledger.

3) Prepare the trial balance of Harper Service Center at March 31, 2014

  

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 debit balance credit Cash $26 000 Accounts receivable 4.500 Accounts payable $2 000 Harper, capital 28 500 Total $30 500 $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.