b. Post elcl chuj Exhibit 3-8). c. Prepare a trial balance dated May 31, current

Question

b. Post elcl chuj Exhibit 3-8). c. Prepare a trial balance dated May 31, current year. Assume aceof not included in the trial balance. L03-3, L03-5, LO3-8, LO3-9 Georgia Corporation incorporated on September 2, current year. The company engaged in the fol- lowing transactions during its first month of operations. EXERCISE 3.11 Journalizing. Posting, and Preparing a Trial Balance Issued capital stock in exchange for $1,170,000 cash. Purchased land and a building for $1,080,000. The value of the land was $240,000, and the value of the building was $840,000. The company paid $120,000 cash and issued a note payable for the balance. Sept. 2 Sept. 4 Purchased office supplies for $600 on account. The supplies will last for several months. Sept. 12 Billed clients $216,000 on account. Recorded and paid salary expense of $72,000. Received $132.000 from clients billed on September 19. Sept. 19 Sept. 29 Sept. 30 A partial list of the account titles used by the company includes the following. Cash Accounts Receivable Office Supplies Land Building Notes Payable Accounts Payable Capital Stock Client Revenue Salary Expense a. Prepare journal entries, including explanations, for these transactions. b. Post each entry to the appropriate ledger accounts (use the T account format illustrated in Exhibit 3-8). Prepare a trial bal are not included in the trial balance. c. ance dated September 30, current year. Assume accounts with zero balances t03-3,L03-5,L03-8, L03-9 Elaine Consulting incorporated on February 1, current year EXERCISE 3.12 ing transactions during its first month

Explanation / Answer

02-Sep Cash          1,170,000 Capital Stock          1,170,000 4 Land              240,000 Building          1,080,000 Cash              120,000 Notes Payable          1,200,000 12 Office Supplies                      600 Accounts Payable                      600 19 Accounts Receivable              216,000 Client Revenue              216,000 29 Salary Expense                72,000 Cash                72,000 30 Cash              132,000 Accounts Receivable              132,000 Cash 2    1,170,000 4    120,000 30       132,000 29      72,000 30 Bal    1,110,000 Accounts Receivable 19       216,000 30    132,000 30 Bal          84,000 Office Supplies 12                600 30 Bal                600 Land 4       240,000 30 Bal       240,000 Client Revenue 19    216,000 30 Bal    216,000 Building 4    1,080,000 30 Bal    1,080,000 Note Payable 4    1,200,000 30 Bal    1,200,000 Accounts Payable 12                600 30 Bal                600 Capital Stock 2    1,170,000 30 Bal    1,170,000 Salary Expense 29          72,000 30 Bal          72,000 Georgia Corporation Trial Balance September 30 Debit Credit Cash          1,110,000 Accounts Receicable                84,000 Office Supplies                      600 Land              240,000 Building          1,080,000 Note Payable          1,200,000 Accounts Payable                      600 Capital Stock          1,170,000 Client revenue              216,000 Salary Expense                72,000 Total          2,586,600          2,586,600

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