90.2K

Verified Solution

Link Copied!

The following four-column accounts of Tanya PaydenTanya Payden, CPA have been opened for you: Cash, 110; Accounts Receivable, 120; Office Supplies, 130; Office Furniture, 140; Accounts Payable, 210; Utilities Payable, 220; Common Stock, 310; Dividends, 320; Service Revenue, 410; Salaries Expense, 510; Rent Expense, 520; and Utilities Expense, 530. Journalize the transactions and then post the journal entries to the four-column accounts. Explanations are not required for the journal entries. Keep a running balance in each account. Assume the journal entries are recorded on page 10 of the journal.

2. Prepare the trial balance as of JuneJune 3030, 20182018.

Requirement 1. Journalize the transactions and then post the journal entries to the four-column accounts. Keep a running balance in each account. Assume the journal entries are recorded on page 10 of the journal. (Record debits first, then credits. Exclude explanations from journal entries.)

Begin by journalizing the transactions.

JuneJune

1:

PaydenPayden

opened an accounting firm by contributing

$ 16 comma 100$16,100

cash and office furniture with a fair market value of

$ 5 comma 200$5,200

in exchange for common stock. Prepare a compound entry.

	Save Accounting Table...			+
	Copy to Clipboard...			+

	Accounts	Debit	Credit
Jun. 1	Cash	16,100
	Office Furniture	5,200
	Common Stock		21,300

JuneJune

5: Paid monthly rent of

$ 1 comma 500$1,500.

	Save Accounting Table...			+
	Copy to Clipboard...			+

Date	Accounts	Debit	Credit
Jun. 5	Rent Expense	1,500
	Cash		1,500

JuneJune

9: Purchased office supplies on account,

$ 900$900.

	Save Accounting Table...			+
	Copy to Clipboard...			+

Date	Accounts	Debit	Credit
Jun. 9	Office Supplies	900
	Accounts Payable		900

JuneJune

14: Paid employee's salary,

$ 1 comma 600$1,600.

	Save Accounting Table...			+
	Copy to Clipboard...			+

Date	Accounts	Debit	Credit
Jun. 14	Salaries Expense	1,600
	Cash		1,600

JuneJune

18: Received a bill for utilities to be paid next month,

$ 240$240.

	Save Accounting Table...			+
	Copy to Clipboard...			+

Date	Accounts	Debit	Credit
Jun. 18	Utilities Expense	240
	Utilities Payable		240

JuneJune

21: Paid

$ 500$500

of the account payable created on

JuneJune

9.

	Save Accounting Table...			+
	Copy to Clipboard...			+

Date	Accounts	Debit	Credit
Jun. 21	Accounts Payable	500
	Cash		500

JuneJune

25: Performed accounting services on account,

$ 6 comma 000$6,000.

	Save Accounting Table...			+
	Copy to Clipboard...			+

Date	Accounts	Debit	Credit
Jun. 25	Accounts Receivable	6,000
	Service Revenue		6,000

JuneJune

28: Paid cash dividends of

$ 6 comma 800$6,800.

	Save Accounting Table...			+
	Copy to Clipboard...			+

Date	Accounts	Debit	Credit
Jun. 28	Dividends	6,800
	Cash		6,800

Now post to the four-column accounts. Keep a running balance in each account. Assume the journal entries are recorded on page 10 of the journal. (If a box is not used in the table, leave the box empty; do not enter a zero. Compute the new balance for each account after posting the transaction.)

JuneJune

1:

PaydenPayden

opened an accounting firm by investing

$ 16 comma 100$16,100

cash and office furniture valued at

$ 5 comma 200$5,200

in exchange for common stock.

Review the journal entry you prepared above.

LOADING...

	Save Accounting Table...			+
	Copy to Clipboard...			+

CASH					Account No. 110
					Balance
Date	Item	Post. Ref.	Debit	Credit	Debit	Credit
2018
Jun. 1		J10	16,100		16,100

	Save Accounting Table...			+
	Copy to Clipboard...			+

OFFICE FURNITURE					Account No. 140
					Balance
Date	Item	Post. Ref.	Debit	Credit	Debit	Credit
2018
Jun. 1		J10	5,200		5,200

	Save Accounting Table...			+
	Copy to Clipboard...			+

COMMON STOCK					Account No. 310
					Balance
Date	Item	Post. Ref.	Debit	Credit	Debit	Credit
2018
Jun. 1		J10		21,300		21,300

Select the posting references in the journal for the transaction you posted in the preceding step.

	Save Accounting Table...			+
	Copy to Clipboard...			+

Date	Accounts	Post. Ref.	Debit	Credit
Jun. 1	Cash	110	16,100
	Office Furniture	140	5,200
	Common Stock	310		21,300

JuneJune

5: Paid monthly rent of

$ 1 comma 500$1,500.

Review the journal entry you prepared above.

LOADING...

	Save Accounting Table...			+
	Copy to Clipboard...			+

CASH					Account No. 110
					Balance
Date	Item	Post. Ref.	Debit	Credit	Debit	Credit
2018
Jun. 1		J10	16,100		16,100
Jun. 5		J10

	Save Accounting Table...			+
	Copy to Clipboard...			+

RENT EXPENSE					Account No. 520
					Balance
Date	Item	Post. Ref.	Debit	Credit	Debit	Credit
2018
Jun. 5

Answer & Explanation Solved by verified expert

See Answer