Chapter 2, Problem 2.32AP

Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance

The trial balance of Steve Mentz, CPA, is dated March 31, 2017:

During April, the business completed the following transactions:

Apr. 4	Collected $ 1,000 cash from a client on account.
8	Performed tax services for a client on account, $5,800.
13	Paid $1,500 on account.
14	Purchased furniture on account, $4,600.
15	Mentz contributed his persona l automobile to the business in exchange for common stock. The automobile had a market value of $8,000.
18	Purchased office supplies on account, $500.
19	Received $2,900 for tax services performed on April 8.
20	Paid cash dividends of $8,000.
21	Received $5,400 cash for consulting work completed.
24	Received $1,200 cash for accounting services to be completed next month.
27	Paid office rent, $700.
28	Paid employee salary, $1,600.

Requirements

1. 1. Record the April transactions in the journal. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Furniture; Automobile; Land; Accounts Payable; Unearned Revenue; Common Stock; Dividends; Service Revenue; Salaries Expense; and Rent Expense. Include an explanation for each entry.
2. 2. Open the four-column ledger accounts listed in the trial balance, together with their balances as of March 31. Use the following account numbers: Cash, 11; Accounts Receivable, 12; Office Supplies, 13; Furniture, 14; Automobile, 15; Land, 16; Accounts Payable, 21; Unearned Revenue, 22; Common Stock, 31;
3. 1. Dividends, 33; Service Revenue, 41; Salaries Expense, 51; and Rent Expense, 52.
4. 2. Post the journal entries to four-column accounts in the ledger, using dates, account numbers, journal references, and posting references. Assume the journal entries were recorded on page 5 of the journal.
5. 3. Prepare the trial balance of Steve Mentz, CPA, at April 30, 2017.

3. Cash Balance $16,700