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2. Open a T-account for each of the accounts. 3. Post the journal entries to the T-accounts and calculate account balances. Formal posting references are not required. 4. Prepare a trial balance as of December 31, 2014. 5. Prepare the income statement of Davis Consulting for the month ended December 31, 2014. 6. Prepare the statement of owner's equity for the month ended December 31, 2014. 7. Prepare the balance sheet as of December 31, 2014. 8. Calculate the debt ratio for Davis Consulting.

2. Open a T-account for each of the accounts. 3. Post the journal entries to the T-accounts and calculate account balances. Formal posting references are not required. 4. Prepare a trial balance as of December 31, 2014. 5. Prepare the income statement of Davis Consulting for the month ended December 31, 2014. 6. Prepare the statement of owner's equity for the month ended December 31, 2014. 7. Prepare the balance sheet as of December 31, 2014. 8. Calculate the debt ratio for Davis Consulting.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Purchased office furniture on account, $4,200. The furniture should last for five years. 4 5 Purchased office supplies on account, $900. 9 Performed consulting service for a dient on account, $1,500. 12 Paid utilities expenses, $250. 18 Performed service for a client and received cash of $1,100. 21 Received $1,400 in advance for client service to be performed in the future. Hired an administrative assistant to be paid $2,055 on the 20th day of each month. The secretary begins work immediately. 21 26 Paid $400 on account. 28 Collected $300 on account. 30 Davis withdrew cash of $1,400. Requirements 1. Journalize the transactions, using the following accounts: Cash; Accounts Receivable; Office Supplies; Equipment; Furniture; Accounts Payable; Unearned Revenue; Davis, Capital; Davis, Withdrawals; Service Revenue; Rent Expense; and Utilities Expense. Explanations are not required. 2. Open a T-account for each of the accounts. 3. Post the journal entries to the T-accounts and calculate account balances. Formal posting references are not required. 4. Prepare a trial balance as of December 31, 2014. 5. Prepare the income statement of Davis Consulting for the month ended December 31, 2014. 6. Prepare the statement of owner's equity for the month ended December 31, 2014. 7. Prepare the balance sheet as of December 31, 2014. 8. Calculate the debt ratio for Davis Consulting.
Transcribed Image Text:Purchased office furniture on account, $4,200. The furniture should last for five years. 4 5 Purchased office supplies on account, $900. 9 Performed consulting service for a dient on account, $1,500. 12 Paid utilities expenses, $250. 18 Performed service for a client and received cash of $1,100. 21 Received $1,400 in advance for client service to be performed in the future. Hired an administrative assistant to be paid $2,055 on the 20th day of each month. The secretary begins work immediately. 21 26 Paid $400 on account. 28 Collected $300 on account. 30 Davis withdrew cash of $1,400. Requirements 1. Journalize the transactions, using the following accounts: Cash; Accounts Receivable; Office Supplies; Equipment; Furniture; Accounts Payable; Unearned Revenue; Davis, Capital; Davis, Withdrawals; Service Revenue; Rent Expense; and Utilities Expense. Explanations are not required. 2. Open a T-account for each of the accounts. 3. Post the journal entries to the T-accounts and calculate account balances. Formal posting references are not required. 4. Prepare a trial balance as of December 31, 2014. 5. Prepare the income statement of Davis Consulting for the month ended December 31, 2014. 6. Prepare the statement of owner's equity for the month ended December 31, 2014. 7. Prepare the balance sheet as of December 31, 2014. 8. Calculate the debt ratio for Davis Consulting.
P2-43 Journalizing transactions, posting to T-accounts, and preparing a trial balance Problem P2-43 continues with the consulting business of Carl Davis, begun in Problem P1-54. Here you will account for Davis Consulting's transactions as it is actually done in practice. Davis Consulting completed the following transactions during December 2014: Dec. 2 Owner contributed $18,000 cash in exchange for capital. 2 Paid monthly office rent, $550. 3 Paid cash for a computer, $1,800. This equipment is expected to remain in service for five years. Purchased office furniture on account, $4,200. The furniture should last for five years. 4 5 Purchased office supplies on account, $900. 9 Performed consulting service for a dient on account, $1,500. Paid utilities expenses, $250. 12 18 Performed service for a client and received cash of $1,100. Received $1,400 in advance for client service to be performed in the future. 21 Hired an administrative assistant to be paid $2,055 on the 20th day of each month. The secretary begins work immediately. 21 26 Paid $400 on account. 28 Collected $300 on account. 30 Davis withdrew cash of $1,400. Requirements 1. Journalize the transactions, using the following accounts: Cash; Accounts Receivable; Office Supplies; Equipment; Furniture; Accounts Payable; Unearned Revenue; Davis, Capital; Davis, Withdrawals; Service Revenue; Rent Expense; and Utilities Expense. Explanations are not required. 2. Open a T-account for each of the accounts. 3. Post the journal entries to the T-accounts and calculate account balances.
Transcribed Image Text:P2-43 Journalizing transactions, posting to T-accounts, and preparing a trial balance Problem P2-43 continues with the consulting business of Carl Davis, begun in Problem P1-54. Here you will account for Davis Consulting's transactions as it is actually done in practice. Davis Consulting completed the following transactions during December 2014: Dec. 2 Owner contributed $18,000 cash in exchange for capital. 2 Paid monthly office rent, $550. 3 Paid cash for a computer, $1,800. This equipment is expected to remain in service for five years. Purchased office furniture on account, $4,200. The furniture should last for five years. 4 5 Purchased office supplies on account, $900. 9 Performed consulting service for a dient on account, $1,500. Paid utilities expenses, $250. 12 18 Performed service for a client and received cash of $1,100. Received $1,400 in advance for client service to be performed in the future. 21 Hired an administrative assistant to be paid $2,055 on the 20th day of each month. The secretary begins work immediately. 21 26 Paid $400 on account. 28 Collected $300 on account. 30 Davis withdrew cash of $1,400. Requirements 1. Journalize the transactions, using the following accounts: Cash; Accounts Receivable; Office Supplies; Equipment; Furniture; Accounts Payable; Unearned Revenue; Davis, Capital; Davis, Withdrawals; Service Revenue; Rent Expense; and Utilities Expense. Explanations are not required. 2. Open a T-account for each of the accounts. 3. Post the journal entries to the T-accounts and calculate account balances.
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