The trial balance of Thomson Engineering is dated February 28, 2014.

During March, Thomson Engineering completed the following transactions:
March 4 Collected $600 cash from a client on account.
8 Designed a system for a client on account, $580.
13 Paid cash for items purchased on account, $320.
18 Purchased supplies on account, $120.
20 R. Thomson withdrew $200 cash for personal use.
21 Received a verbal promise of a $2,000 contract.
22 Received cash of $620 for consulting work just completed.
31 Paid employees' salaries, $1,300 cash.
Required
1. Record the March transactions in Page 3 of the journal. Include an explanation for each entry.
2. Open three-column ledger accounts for the accounts listed in the trial balance, together with their balances at February 28. Enter Bal. (for previous balance) in the Item column, and place a check mark (✓) in the journal reference column for the February 28 balance in each account. Post the transactions to the ledger, using dates, account numbers, journal references, and posting references.
3. Prepare the trial balance of Thomson Engineering at March 31, 2014.

Transcribed Image Text:

THOMSON ENGINEERING Trial Balance February 28, 2014 Account Number Account Debit Credit $ 4,000 16,000 3,600 37,200 1100 Cash 1200 Accounts receivable 1300 Supplies 1600 Automobile Accounts payable R. Thomson, Capital R. Thomson, Withdrawals $8,000 50,000 2000 3000 3100 4,400 5000 Service revenue 16,400 Rent expense 6100 2,000 7,200 $74,400 Salary expense Total 6200 $74,400