Explore BrainMass
Share

Journalizing Transactions and Preparing a Trial Balance

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Town Architects incorporated as licensed architects on April 1, 2012. During the first month of the operation of the business, these events and transactions occurred.
Apr.1 Stockholders invested $18,000 in cash in exchange for common stock for the corporation
1 Hired a secretary-receptionist as a salary of $375 per week, payable monthly
2 Paid office rent for the month $900
3 Purchased architectural supplies on account from Spring Green Company $1,300
10 Completed blueprints on a carport and billed client $1,900 for services
11 Received $700 cash advance from J. Madison to design a new home
20 Received $2,800 cash for services completed and delivered to M. Svetlana
30 Paid secretary-receptionist for the month $1,500
30 Paid $300 to Spring Green Company for accounts payable due
The company uses these accounts: Cash, Accounts Receivable, Supplies, Accounts Payable, Unearned Service Revenue, Common Stock, Service Revenue, Salaries and Wages Expense, and Rent Expense.

Instructions
a) Journalize the transactions, including explanations
b) Post to the ledger T accounts
c) Prepare a trial balance on April 30, 2012

© BrainMass Inc. brainmass.com October 25, 2018, 9:43 am ad1c9bdddf
https://brainmass.com/business/journal-entries/journalizing-transactions-and-preparing-a-trial-balance-584224

Solution Summary

This solution illustrates how to journalize transactions, post them to T-accounts, and use the T-accounts to post the account balances to the trial balance.

$2.19
See Also This Related BrainMass Solution

P2-2B - Journalizing, Posting, and Preparing a Trial Balance

P2-2B - Journalizing, Posting, and Preparing a Trial Balance

Rosa Perez is a licensed architect. During the first month of the operation of her business, the following events and transactions occurred:

April 1 - Stockholders invested $30,000 cash in exchange for common stock.
April 1 - Hired a secretary-receptionist at a salary of $500 per week payable monthly.
April 2 - Paid office rent for the month $800.
April 3 - Purchased architectural supplies on account from Halo Company $1,500.
April 10 - Completed blueprints on a carport and billed client $1,200 for services.
April 11 - Received $500 cash advance from R. Welk for the design of a new home.
April 20 - Received $1,500 cash for services completed and delivered to P. Donahue.
April 30 - Paid secretary-receptionist for the month $2,000.
April 30 - Paid $600 to Halo Company for accounts payable due.

Rosa 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.

Instructions
(a) Journalize the transactions.
(b) Post to the ledger accounts.
(c) Prepare a trial balance on April 30, 2008.

View Full Posting Details