The trial balance of Shawn Merry, CPA, is dated March 31, 2018:

During April, the business completed the following transactions:
Apr. 4 Collected $2,500 cash from a client on account.
8 Performed tax services for a client on account, $5,400.
13 Paid $3,000 on account.
14 Purchased furniture on account, $3,600.
15 Merry contributed his personal automobile to the business in exchange for common stock. The automobile had a market value of $9,500.
18 Purchased office supplies on account, $900.
19 Received $2,700 for tax services performed on April 8.
20 Paid cash dividends of $6,500.
21 Received $5,700 cash for consulting work completed.
24 Received $2,400 cash for accounting services to be completed next month.
27 Paid office rent, $600.
28 Paid employee salary, $1,700.
Requirements
1. Record the April transactions in the journal. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Furniture; Automobile; 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; Land, 14; Furniture, 15; Automobile, 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 Shawn Merry, CPA, at April 30, 2018.

Transcribed Image Text:

SHAWN MERRY, CPA Trial Balance March 31, 2018 Balance Account Title Debit Credit $ 11,000 Cash Accounts Receivable 16,500 Office Supplies 400 Land 30,000 Furniture Automobile $ 3,800 Accounts Payable Unearned Revenue Common Stock 52,300 Dividends 8,200 Service Revenue Salaries Expense 5,600 Rent Expense 800 Total $ 64,300 $ 64,300