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1. Open the following accounts, with the balances indicated, in the ledger of Colorado Services Center. Use the T-account format. Colorado Service Center Trial Balance April 1, 2021 Balance ACCOUNT DEBIT CREDIT Cash $35,000 Equipment $17,500 Truck $29,000 Account Receivable $4,200 Account Payable $5,700 Harper, capital $80,000 Total $85,700 $85,700

During March, the business engaged in the following transactions: a. Borrowed $49,000 from the bank and signed a notes payable in the name of the business b. Paid cash of $26,500 to acquire land c. Performed customer service and earned revenue on account, $5,560 d. Performed service for a customer and received cash of $5,800 e. Purchased supplies on account, $350 f. Paid $3,575 on accounts payable g. Paid cash expense for salaries ($4,500) and rent ($2,500); make a compound entry h. Received $3,300 on account i. Pays $900 in cash for a 3-month auto insurance j. Received a $255 utility bill that will be paid next week k. Harper withdrew cash of $5,575 l. Paid maintenance expense of $230

2. Journalize each transaction. Key journal entries by transaction letter. Journal Entry ACCOUNT DEBIT CREDIT a. Cash 49,000 Notes Payable 49,000 b. Land 26,500 Cash 26,500

3. Post the transaction to the ledger. Your general ledger cash balance uses a full ledger sheet; use the T Chart for all other accounts. Colorado Service Center General Ledger Account: Cash Account Number: 101 Balance Trans. Description DEBIT CREDIT DEBIT CREDIT 1 Open Balance 35,000 35,000 2 a. Notes Payable 49,000 84,000 3 b. Land 26,500 57,500 Equipment Truck Bal 17,500 Bal Bal. Bal. Accum. deprec. equipment Accum. deprec. truck Bal. 0 Bal. 0

Accounts receivable Supplies Bal. Bal. Bal. Land Prepaid auto insurance b. 26,500 Bal. Bal. 900 Accounts payable Notes payable Bal. a. 49,000 Bal. Bal. Salary payable Utilities payable Bal. 0 Bal. Unearned service revenue Service revenue Bal. 0 Bal.

Harper, capital Harper, drawing Bal. Bal. Bal. Deprec. expense - equipment Deprec. expense - truck Bal. 0 Bal. 0 Insurance expense Rent expense . Bal. 0 Bal. Salary expense Supplies expense Bal. Bal. 0 Maintenance expense Bal. Utilities expense Bal.

4. Prepare the trial balance of Colorado Service Center at April 30, 2021.

Trial Balance

ACCOUNT DEBIT CREDIT Cash Equipment Truck Accum. deprec. equipment Accum. deprec. truck Accounts receivable Supplies Land Prepaid auto insurance Accounts payable Notes payable Salary payable Utilities payable Unearned Service Revenue Harper, capital Harper, drawing Service revenue Depreciation expense Equip Depreciation expense Truck Insurance expense Rent expense Salary expense Supplies expense Maintenance expense Utilities expense Total

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