Tyson Sarsfield opened an accounting firm on July 1, 2012. During the month of July, the business completed the following transactions: Jul 1 The business

Question

52 users unlocked this solution today!

Tyson Sarsfield opened an accounting firm on July 1, 2012. During the month of July, the business completed the following transactions:
Jul 1 The business sold $95,000 of common stock to open the firm, Sarsfield & Associates, Inc.
3 Purchased supplies, $600, and furniture, $2,100, on account.
5 Performed accounting service for a client and received cash, $2,700.
8 Paid cash to acquire land for a future office site, $23,000.
11 Prepared tax returns for a client on account, $2,200.
14 Paid assistant’s salary, $500.
16 Paid for the furniture purchased July 3 on account.
19 Received $2,000 cash for accounting services performed.
23 Billed a client for $1,500 of accounting services.
28 Received $700 from client on account.
31 Paid secretary’s salary, $500.
31 Paid rent expense, $1,400.
31 Paid $1,700 of dividends.

Requirements
1. Open, or set up, the following T-accounts: Cash, Accounts Receivable, Supplies, Furniture, Land, Accounts Payable, Common Stock, Dividends, Service Revenue, Salaries Expense, and Rent Expense.
2. Journalize transactions. Explanations are not required.
3. Post the transactions to the T-accounts that have been set up for you, using transaction dates as posting references.
4. Calculate the balance in each account.
5. Prepare the trial balance for Sarsfield & Associates, Inc., at July 31, 2012.