Transaction Analysis and Trial Balance

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 $28,500 cash to the business on October 1, receiving shares of common stock in the company. 2 Purchased office equipment on account, $11,300 3 Paid office rent for October, 51,600, 4 Paid $10.500 to access online legal database for two years, 5 Billed clients for services rendered, 512200 6 Made 56,900 payment on account for the equipment purchased on October 2 7 Paid legal assistant's salary, $3.700. 8 Collected $10,300 from clients previously bled for services 9 Received invoice for October utilities, $1,080; it will be paid in November 10 Paid stockholders $2,400 as a cash dividend General Journal Description Ref. Debit Credit ( (1) 0 0 ( 0 0 To record stockholder contribution. (2) 0 0 0 0 To record office equipment purchased on account. (3) 0 0 . 0 0 To record payment of rent expense. (4) 0 0 . . 0 0 To record prepayment for database service. (5) 0 o o 0 To record billing for legal services. (6) . . O O O O To record payment on equipment. 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 0 US 0 0 To record cash payment of dividends.