ACC 205 Week 1 P2-30A - Doris Stewart

P2-30A - Doris Stewart

P2-30A Journalizing transactions, posting to T-accounts, and preparing a trial balance [4560 min]

Doris Stewart started her practice as a design consultant on September 1, 2012. During the first month of operations, the business completed the following transactions:

Sep 1Received $42,000 cash and gave capital to Stewart.

4Purchased supplies, $700, and furniture, $1,900, on account.

6Performed services for a law firm and received $1,400 cash.

7Paid $24,000 cash to acquire land for a future office site.

10Performed service for a hotel and received its promise to pay the $1,000 within one week.

14Paid for the furniture purchased September 4 on account.

15Paid secretary's bi-monthly salary, $490.

17Received cash on account, $400.

20Prepared a design for a school on account, $700.

28Received $2,100 cash for consulting with Plummer & Gorden.

30Paid secretary's bi-monthly salary, $490.

30Paid rent expense, $650.

30Stewart withdrew cash of $3,000.

Requirements

1.Open the following T-accounts: Cash; Accounts receivable; Supplies; Furniture; Land; Accounts payable; Stewart, capital; Stewart, drawing; Service revenue; Salary expense; and Rent expense.

2.Record each transaction in the journal, using the account titles given. Key each transaction by date. Explanations are not required.

3.Post the transactions to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal, as shown in the chapter.

4.Prepare the trial balance of Doris Stewart, Designer, at September 30, 2012.

(45-60 min.) P 2-30A