P2-30A Journalizing transactions, posting journal entries to T-accounts, and preparing a trial balance Learning Objective 3, 4 Total Debits $55,900
Doris Stann started her practice as a design consultant on September 1, 2017.
During the first month of operations, the business completed the following transactions:
Sep. 1 Received $47,000 cash and gave capital to Stann.
Sep. 4 Purchased office supplies, $700, and furniture, $1,600, on account.
Sep. 6 Performed services for a law firm and received $1,400 cash.
Sep. 7 Paid $20,000 cash to acquire land to be used in operations.
Sep. 10 Performed services for a hotel and received its promise to pay the $900 within one week.
Sep. 14 Paid for the furniture purchased on September 4 on account.
Sep. 15 Paid assistant’s semimonthly salary, $1,480.
Sep. 17 Received cash on account, $700.
Sep. 20 Prepared a design for a school on account, $700.
Sep. 25 Received $2,200 cash for design services to be performed in October.
Sep. 28 Received $2,600 cash for consulting with Plummer & Gordon.
Sep. 29 Paid $2,400 cash for a 12-month insurance policy starting on October Sep. 30 Paid assistant’s semimonthly salary, $1,480.
Sep. 30 Paid monthly rent expense, $500.
Sep. 30 Received a bill for utilities, $400. The bill will be paid next month.
Sep. 30 Stann withdrew cash of $3,000.
Requirements Record each transaction in the journal using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Furniture; Land; Accounts Payable; Utilities Payable; Unearned Revenue; Stann, Capital; Stann, Withdrawals; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense. Explanations are not required. Open a T-account for each of the accounts. Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal. Prepare the trial balance of Doris Stann, Designer, as of September 30, 2017.