The trial balance of James Howe, CPA, is dated March 31, 2017:

During April, the business completed the following transactions:
Apr. 4 Collected $2,000 cash from a client on account.
8 Performed tax services for a client on account, $5,400.
13 Paid $3,300 on account.
14 Purchased furniture on account, $4,600.
15 Howe contributed his personal automobile to the business in exchange for common stock. The automobile had a market value of $10,000.
18 Purchased office supplies on account, $1,000.
19 Received $2,700 for tax services performed on April 8.
20 Paid cash dividends of $4,000.
21 Received $3,800 cash for consulting work completed.
24 Received $1,400 cash for accounting services to be completed next month.
27 Paid office rent, $600.
28 Paid employee salary, $1,000.
Requirements
1. Record the April transactions in the journal using the following accounts: Cash; Accounts Receivable; Office Supplies; Furniture; Automobile; Land; Accounts Payable; Unearned Revenue; Common Stock; Dividends; Service Revenue; Salaries Expense; and Rent Expense. Include an explanation for each entry.
2. Open the four-column ledger accounts listed in the trial balance, together with their balances as of March 31. Use the following account numbers: Cash, 11; Accounts Receivable, 12; Office Supplies, 13; Furniture, 14; Automobile, 15;
Land, 16; Accounts Payable, 21; Unearned Revenue, 22; Common Stock, 31; Dividends, 33; Service Revenue, 41; Salaries Expense, 51; and Rent Expense, 52.
3. Post the journal entries to four-column accounts in the ledger, using dates, account numbers, journal references, and posting references. Assume the journal entries were recorded on page 5 of the journal.
4. Prepare the trial balance of James Howe, CPA, at April 30, 2017.

Transcribed Image Text:

JAMES HOWE, CPA Trial Balance March 31, 2017 Balance Debit 10,000 7500 400 Account Title Cash Accounts Receivable Office Supplies Furniture Automobile Land Accounts Payable Unearned Revenue Common Stock Dividends Service Revenue Salaries Expense Rent Expense Total Credit 27,000 $4,200 33,300 10,800 2,500 900 48,300 48,300