P-F:2-29A Journalizing transactions, posting journal entries to T-accounts, and preparing a trial balance (Learning Objectives 3, 4)
Vince York practices medicine under the business title Vince York, M.D. During July, the medical practice completed the following transactions:
The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Accounts Payable; Advertising Payable; Unearned Revenue; Notes Payable; York, Capital; York, Withdrawals; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense; and Advertising Expense.
Requirements
1. Journalize each transaction. Explanations are not required.
2. Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal.
2. Cash Balance $56,050
3. Prepare the trial balance of Vince York, M.D., as of July 31, 2024.
P-F:2-30A Journalizing transactions, posting journal entries to T-accounts, and preparing a trial balance (Learning Objectives 3, 4)
Ann Simpson started her practice as a design consultant on September 1, 2024. During the first month of operations, the business completed the following transactions:
Requirements
1. Record each transaction in the journal using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Land; Furniture; Accounts Payable; Utilities Payable; Unearned Revenue; Simpson, Capital; Simpson, Withdrawals; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required.
2. Open a T-account for each of the accounts.
3. Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal.
4. Prepare the trial balance of Ann Simpson, Designer, as of September 30, 2024.
4. Total Debits $58,300
P-F:2-31A Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance (Learning Objectives 3, 4)
Terrence Murphy opened a law office on January 1, 2024. During the first month of operations, the business completed the following transactions:
Requirements
1. Record each transaction in the journal, using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Land; Building; Furniture; Accounts Payable; Utilities Payable; Notes Payable; Murphy, Capital; Murphy, Withdrawals; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required.
2. Open the following four-column accounts including account numbers: Cash, 101; Accounts Receivable, 111; Office Supplies, 121; Prepaid Insurance, 131; Land, 141; Building, 151; Furniture, 161; Accounts Payable, 201; Utilities Payable, 211; Notes Payable, 221; Murphy, Capital, 301; Murphy, Withdrawals, 311; Service Revenue, 411; Salaries Expense, 511; Rent Expense, 521; and Utilities Expense, 531.
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 1 of the journal.
3. Cash Balance $50,160
4. Prepare the trial balance of Terrence Murphy, Attorney, at January 31, 2024.
P-F:2-32A Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance (Learning Objectives 3, 4)
The trial balance of Shawn Merry, CPA, is dated March 31, 2024:
A trial balance for Shawn Merry, C P A for March 31, 2024.
During April, the business completed the following transactions:
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; Merry, Capital; Merry, Withdrawals; 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; Merry, Capital, 31; Merry, Withdrawals, 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.
3. Cash Balance $12,500
4. Prepare the trial balance of Shawn Merry, CPA, at April 30, 2024.
P-F:2-33A Correcting errors in a trial balance (Learning Objective 4)
The trial balance of Beautiful Tots Child Care does not balance.
A trial balance for Beautiful Tots Child Care for August 31, 2024.
The following errors are detected:
a. Cash is understated by $1,500.
b. A $4,100 debit to Accounts Receivable was posted as a credit.
c. A $1,400 purchase of office supplies on account was neither journalized nor posted.
d. Equipment was incorrectly transferred from the ledger as $91,500. It should have been transferred as $83,000.
e. Salaries Expense is overstated by $700.
f. A $300 cash payment for advertising expense was neither journalized nor posted.
g. A $200 owner’s withdrawal was incorrectly journalized as $2,000.
h. Service Revenue was understated by $4,100.
i. A 12-month insurance policy was posted as a $1,900 credit to Prepaid Insurance. Cash was posted correctly.
Prepare the corrected trial balance as of August 31, 2024. Journal entries are not required.
Total Debits $123,250
