Transaction Analysis and Trial Balance Make T-accounts for the following accounts that appear in the general ledger of Mathew Thomas an attorney: Cash; Accounts Receivable; Office Equipment; Legal Database Subscription; Accounts Payable; Common Stock; Dividends; Legal Fees Earned; Salaries Expense; Rent Expense; and Utilities Expense. Using the accounting equation, record each of the transactions in columnar format. Prepare journal entries and record the following October transactions in the T-accounts and key all entries with the number identifying the transaction. Determine the balance for each account and prepare a trial balance as of October 31. Oct. 1 Thomas started his law practice by contributing $28,000 cash to the business on October 1; he received common stock for his investment. 2 Purchased office equipment on account, $13,200. 3 Paid office rent for October, $1,500. 4 Paid $12,400 to access online legal database for two years. 5 Billed clients for services rendered, $12,100. 6 Made $6,800 payment on account for the equipment purchased on October 2. 7 Paid legal assistant's salary, $3,600. 8 Collected $10,200 from clients previously billed for services. 9 Received invoice for October utilities, $980; it will be paid in November. 10 The firm paid stockholders $2,800 cash as a dividend. Cash + Accounts Receivable + Database Subscription + Office Equipment 0 0 = Accounts Payable + Common Stock + Retained Earnings $ 0 0 $ 0 1 $ 0 $ $ 0 $ $ 2 0 0 0 0 0 0 0 3 0 0 0 0 0 0 0 4 0 0 0 0 0 0 0 5 0 0 0 0 0 0 0 6 0 0 0 0 0 0 0 7 0 0 0 0 0 0 0 8 0 0 0 0 0 0 0 9 0 0 0 0 0 0 0 10 0 0 0 0 0 0 0 $ 0 + $ 0 + $ 0 + $ 0 = $ 0 + $ 0 + $ 0 General Journal Description Ref. Debit Credit (1) 0 oo| 0 To record stockholder contribution. (2) 0 o o 0 To record office equipment purchased on account. (3) 0 : 0 To record payment of rent expense. (4) o a o o To record prepayment for database service. (5) 0 0 To record billing for legal services. (6) " oo To record payment on equipment. (7) 0 o o 0 To record payment of salaries. (8) . 0 0 - 0 0 To record receipt of cash from clients. (9) 0 o o 0 To record utilities expense. (10) 0 o o 0 To record cash payment of dividends. Cash Accounts Receivable Office Equipment 0 0 0 0 (2) 0 0 0 0 (8) 0 0 Bal 0 0 O 0 Bal 0 0 0 0 (1) (3) (4) (6) (7) (8) (10) Bal 0. 0 0 0 O 0 0 0 Legal Database Accounts Payable Common Stock Dividends (4) 0 0 0 0 (1) 0 0 (10) 0 0 Bal 0 (2) (6) (9) 0 0 Bal 0 0 Bal 0 0 Bal 0 0 Legal Fees Earned Salaries Expense Rent Expense Utilities Expense 0 (5) 0 0 (7) 0 0 (3) 0 0 (9) Olo Bal 0 Bal 0 0 Bal 0 0 Bal MATTHEW THOMAS Trial Balance October 31 Debit Credit $ 0 $ 0 0 0 0 0 0 0 0 0 0 0 Cash Accounts Receivable Office Equipment Legal Database Subscription Accounts Payable Common Stock Dividends Legal Fees Earned Salaries Expense Rent Expense Utilities Expense Totals 0 0 0 0 0 0 0 0 0 0 $ 0 $ 0
