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Journal Entries /Posting/Trial Balance

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P2-2A Judi Dench is a licensed architect. During the first month of the operation of her company,
Judi Dench, Inc., the following events and transactions occurred.

April 1 Stockholders invested $25,000 cash in exchange for common stock.
1 Hired a secretary-receptionist at a salary of $300 per week payable monthly.
2 Paid office rent for the month $800.
3 Purchased architectural supplies on account from Halo Company $1,500.

Journalize a series of transactions.

Journalize transactions, post, and prepare a trial balance.
(SO 2, 4, 6, 7) SEE ATTACHMENT

Accounts Receivable $10,642 Prepaid Insurance $ 1,968
Accounts Payable 8,396 Repair Expense 961
Cash ? Service Revenue 10,610
Delivery Equipment 49,360 Dividends 700
Gas and Oil Expense 758 Common Stock 40,000
Insurance Expense 523 Salaries Expense 4,428
Notes Payable 26,450 Salaries Payable 815
Retained Earnings 4,636


Prepare a trial balance with the accounts arranged as illustrated in the chapter and fill in the
missing amount for Cash.

10 Completed blueprints on a carport and billed client $900 for services.
11 Received $500 cash advance from R.Welk for the design of a new home.
20 Received $1,500 cash for services completed and delivered to P. Donahue.
30 Paid secretary-receptionist for the month $1,500.
30 Paid $600 to Halo Company for accounts payable due.
Judi uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126
Supplies, No. 201 Accounts Payable, No. 205 Unearned Revenue, No. 311 Common Stock,
No. 400 Service Revenue, No. 726 Salaries Expense, and No. 729 Rent Expense.

(a) Journalize the transactions.
(b) Post to the ledger accounts.
(c) Prepare a trial balance on April 30, 2006.

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Solution Summary

The solution explains how the prepare the journal entries, post them and prepare a trial balance