P2-4 Journalising transactions, posting to T-accounts and preparing a trial bala
ID: 2403200 • Letter: P
Question
P2-4 Journalising transactions, posting to T-accounts and preparing a trial balance (45-60 min] Doris Stewart started her practice as a design consultant on 1 September 2016. During the first month of operations, the business completed the following transactions: Received $42 000 cash investment by owner Purchased supplies, $700, and furniture, $1900, on credit. Performed services for a law firm and received $1400 cash. Sep 1 6 7 Paid $24000 cash to acquire land for a future office site. 10 Performed service for a hotel and received its promise to pay the $1000 within one week. 14 Paid for the furniture purchased 4 September on account. 15 Paid secretary's bi-monthly salary, $490. 17 Received cash on account, $400 20 Prepared a design for a school on credit, $700 28 Received $2100 cash for consulting with Plummer& Gorden. 30 Paid secretary's bi-monthly salary, $490. 30 Paid rent expense, $650. 30 Doris Stewart withdrew cash of $3000. Requirements 1 Open the following T-accounts: Cash; Accounts receivable: Supplies; Furniture; Land; Accounts payable; Doris Stewart, capital; Doris Stewart, drawings; Service revenue; Salary 2 Record each transaction in the journal, using the account titles given. Key each 3 Post the transactions to the T-accounts, using transaction dates as posting references in the 4 Prepare the trial balance of Doris Stewart, Designer, as at 30 September 2016 expense; Rent expense. transaction by date. Explanations aren't required ledger accounts. Label the balance of each account Bal, as shown in the chapter.Explanation / Answer
2) DATE ACCOUNTS AND EXPLANATION DEBIT CREDIT Sept 1 Cash $42,000.00 Doris Stewart, Capital $42,000.00 Sept.4 Supplies $700.00 Furniture $1,900.00 Accounts Payable $2,600.00 Sept.6 Cash $1,400.00 Service Revenue $1,400.00 Sept. 7 Land $24,000.00 Cash $24,000.00 Sept.10 Accounts Receivable $1,000.00 Service Revenue $1,000.00 Sept. 14 Accounts Payable $1,900.00 Cash $1,900.00 Sept.15 Salary Expenses $490.00 Cash $490.00 Sept.17 Cash $400.00 Account Receivables $400.00 Sept.20 Accounts Receivable $700.00 Service Revenue $700.00 Sept. 28 Cash $2,100.00 Service Revenue $2,100.00 Sept. 30 Salary Expenses $490.00 Cash $490.00 Sept. 30 Rent Expense $650.00 Cash $650.00 Sept.30 Doris stewart, Withdrawals $3,000.00 Cash $3,000.00
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