Trevor Moore opened a law office on April 1, 2017. During the first month of operations, the business completed the following transactions:
Apr. 1. Moore contributed $76,000 cash to the business, Trevor Moore, Attorney. The business issued common stock to Moore.
3. Purchased office supplies,$400, and furniture, $2,200, on account.
4. Performed legal services for a client and received$900 cash.
7. Purchased a building with a market value of $120,000, and land with a market value of$29,000. The business paid $45,000 cash and signed a note payable to the bank for the remaining amount.
11. Prepared legal documents for a client on account,$800.
15. Paid assistant's semimonthly salary, $1,230.
16. Paid for the office supplies purchased on April 3 on account.
18. Received$2,800 cash for helping a client sell real estate.
19. Defended a client in court and billed the client for $1,500.
25. Received a bill for utilities,$650. The bill will be paid next month.
28. Received cash on account, $1,700.
29. Paid$4,800 cash for a 12-month insurance policy starting on May 1.
29. Paid assistant's semimonthly salary, $1,230.
30. Paid monthly rent expense,$1,100.
30. Paid cash dividends of $2,000.
Requirements
- Record each transaction in the journal, using the following account titles: Cash;
Accounts Receivable; Office Supplies; Prepaid Insurance; Furniture; Building; Land; Accounts Payable; Utilities Payable; Notes Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required.
- Open the following four-column accounts including account numbers: Cash, 101; Accounts Receivable, 111; Office Supplies, 121; Prepaid Insurance, 131; Furniture, 141; Building, 151; Land, 161; Accounts Payable, 201; Utilities Payable, 211; Notes Payable, 221; Common Stock, 301; Dividends, 311; Service Revenue, 411; Salaries Expense, 511; Rent Expense, 521; and Utilities Expense, 531.
- 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 1 of the journal.
- Prepare the trial bal.ance of Trevor Moore, Attorney, at April 30, 2017.