Transaction Analysis and Trial Balance Make T-accounts for the following accounts that appear in the general ledger of Daniel Kelly, 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 a 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 in each account and prepare a trial balance sheet as of October 31. Oct. 1 Kelly started his law practice by contributing $19,500 cash to the business on October 1, receiving shares of common stock in the company 2 Purchased office equipment on account, $10,500 3 Paid office rent for October, 5850. 4 Paid $9,750 to access online legal database for two years. 5 Billed clients for services rendered, $11,450. 6 Made 56,150 payment on account for the equipment purchased on October 2. 7 Paid legal assistant's salary, 52,950. 8 Collected $9,550 from clients previously billed for services. 9 Received invoice for October utilities, $330; it will be paid in November 10 Paid stockholders $1,650 as a cash dividend. Note: Use negative signs with your answers below, when appropriate , Accounting Equation Journal Entries T-Accounts Trial Balance Cash 1 $ 2 Accounts Receivable Database Subscription Office Equipment - Accounts Payable + Common Stock Retained Earnings S 0 0 $ 0 $ $ 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 4 5 6 o o o o o o o o o oc o o o o o o o o o o 0 0 0 7 0 0 0 8 0 0 o o o o o o 9 0 0 10 0 0 0 + 3 0 0 $ s 0 + 3 0 4 5 0 4 5 0 + 3 0 Accounting Equation Journal Entries T-Accounts Trial Balance General Journal Description Debit Credit Ref. (1) > 0 0 . 0 To record stockholder contribution. (2) 0 0 0 0 To record office equipment purchased on account. (3) 0 O 0 0 To record payment of rent expense. (4) 0 0 o 0 To record prepayment for database service. (5) > 0 O 0 0 To record billing for legal services, (6) 0 0 0 To record payment on equipment. (7) 0 0 e 0 0 > 0 0 0 0 To record payment of salaries. (8) 0 . . 0 o To record receipt of cash from clients. (9) 0 0 0 0 To record utilities expense. (10) . 0 0 0 0 To record cash payment of dividends. Accounting Equation Journal Entries T-Accounts Trial Balance (1) Cash 0 0 0 0 Office Equipment 0 Accounts Receivable 0 0 0 0 o (5) (8) Bal (2) 0 0 Bal 0 (4) 0 (6) 0 0 0 0 0 Legal Database (4) Bal 0 0 0 0 (8) (10) Bal 0 0 0 0 Accounts Payable 0 Common Stock Dividends 0 0 0 0 (1) Bal (10) BI 0 0 0 0 0 (2) (6) (9) Bal 0 0 0 0 0 Legal Fees Earned 0 0 (5) Bal D 0 Salarles Expense 0 Rent Expense Utilities Expense D 0 0 0 (9) 0 (3) Bal Ba 0 0 0 0 Bal 0 0 Accounting Equation Journal Entries T-Accounts Trial Balance 0 Determine the balance in each account and prepare a trial balance sheet as of Octo DANIEL KELLY, ATTORNEY-AT-LAW Trial Balance October 31 Debit Credit Cash $ 0 $ Accounts Receivable Office Equipment 0 0 Legal Database Subscription 0 Accounts Payable Common Stock Dividends 0 Legal Fee Earned Salaries Expense 0 Rent Expense 0 Utilities Expense Totals 0 $ 0 0 0 0 0
