Requirement 1. 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;
SikesSikes,
Capital;
SikesSikes,
Withdrawals; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense. Explanations are not
required. (Record debits first, then credits. Exclude explanations from journal entries.)
Sep.Sep.
1: Received
$ 48 comma 000$48,000
cash and gave capital to
SikesSikes.
Date
Accounts
Debit
Credit
Sep. 1
Cash
48,000
Sikes, Capital
48,000
Sep.Sep.
4: Purchased office supplies,
$ 600$600,
and furniture,
$ 2 comma 300$2,300,
on account.
Accounts and Explanation
Debit
Credit
Sep. 4
Office Supplies
600
Furniture
2,300
Accounts Payable
2,900
Sep.Sep.
6: Performed services for a law firm and received
$ 1 comma 300$1,300
cash.
Date
Accounts
Debit
Credit
Sep. 6
Cash
1,300
Service Revenue
1,300
Sep.Sep.
7: Paid
$ 30 comma 000$30,000
cash to acquire land for a future office site.
Date
Accounts
Debit
Credit
Sep. 7
Land
30,000
Cash
30,000
Sep.Sep.
10: Performed services for a hotel and received its promise to pay the
$ 1 comma 800$1,800
within one week.
Date
Accounts
Debit
Credit
Sep. 10
Accounts Receivable
1,800
Service Revenue
1,800
Sep.Sep.
14: Paid for the furniture purchased
SeptemberSeptember
4 on account.
Date
Accounts
Debit
Credit
Sep. 14
Accounts Payable
2,300
Cash
2,300
Sep.Sep.
15: Paid assistant’s semimonthly salary,
$ 1 comma 500$1,500.
Date
Accounts
Debit
Credit
Sep. 15
Salaries Expense
1,500
Cash
1,500
Sep.Sep.
17: Received cash on account,
$ 1 comma 700$1,700.
Date
Accounts
Debit
Credit
Sep. 17
Cash
1,700
Accounts Receivable
1,700
Sep.Sep.
20: Prepared a design for a school on account,
$ 750$750.
Date
Accounts
Debit
Credit
Sep. 20
Accounts Receivable
750
Service Revenue
750
Sep.Sep.
25: Received
$ 2 comma 300$2,300
cash for design services to be performed in
OctoberOctober.
Date
Accounts
Debit
Credit
Sep. 25
Cash
2,300
Unearned Revenue
2,300
Sep.Sep.
28: Received
$ 2 comma 400$2,400
cash for consulting with Plummer & Gorden.
Date
Accounts
Debit
Credit
Sep. 28
Cash
2,400
Service Revenue
2,400
Sep.Sep.
29: Paid
$ 600$600
cash for a 12-month insurance policy starting on
OctoberOctober
1.
Date
Accounts
Debit
Credit
Sep. 29
Prepaid Insurance
600
Cash
600
Sep.Sep.
3030
(a): Paid assistant’s semimonthly salary,
$ 1 comma 500$1,500.
Date
Accounts
Debit
Credit
Sep. 30 (a)
Salaries Expense
1,500
Cash
1,500
Sep.Sep.
3030
(b): Paid monthly rent expense,
$ 700$700.
Date
Accounts
Debit
Credit
Sep. 30 (b)
Rent Expense
700
Cash
700
Sep.Sep.
3030
(c): Received a bill for utilities,
$ 500$500.
The bill will be paid next month.
Date
Accounts
Debit
Credit
Sep. 30 (c)
Utilities Expense
500
Utilities Payable
500
Sep.Sep.
3030
(d):
SikesSikes
withdrew cash of
$ 3 comma 600$3,600.
Date
Accounts
Debit
Credit
Sep. 30 (d)
Sikes, Withdrawals
3,600
Cash
3,600
Requirement 2. T-accounts have been opened for each of the accounts. Post the transactions to the T-
accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each
account
Bal.
on the proper side of the T-account. (Identify the
SeptemberSeptember
3030
transactions as “a” – ‘d” as they are labeled in the journal entry tables.)
Cash
Accounts Payable
Service Revenue
Sep. 1
48,000
30,000
Sep. 7
2,900
Sep. 4
1,300
Sep. 6
Sep. 6
1,300
2,300
Sep. 14
1,800
Sep.
10
Sep.
17
1,700
1,500
Sep. 15
750
Sep.
20
Sep.
25
2,300
600
Sep. 29
2,400
Sep.
28
Sep.
28
2,400
1,500
Sep.
30(a)
700
Sep.
30(b)
3,600
Sep.
30(d)
Sep. 14
2,300
Bal.
15,500
600
Bal.
6,250
Bal.
Accounts Receivable
Utilities Payable
Salaries Expense
Sep.
10
1,800
500
Sep.
30(c)
Sep.
15
1,500
Sep.
20
750
1,700
Sep. 17
Sep.
30(a)
1,500
Bal.
850
500
Bal.
Bal.
3,000
Office Supplies
Unearned Revenue
Rent Expense
Sep. 4
600
2,300
Sep. 25
Sep.
30(b)
700
Bal.
600
2,300
Bal.
Bal.
700
Prepaid Insurance
Sikes, Capital
Utilities Expense
Sep.
29
600
48,000
Sep. 1
Sep.
30(c)
500
Bal.
600
48,000
Bal.
Bal.
500
Furniture
Sikes, Withdrawals
Sep. 4
2,300
Sep.
30(d)
3,600
Bal.
2,300
Bal.
3,600
Land
Sep. 7
30,000
Bal.
30,000
Requirement 3. Prepare the trial balance of
Deb SikesDeb Sikes,
Designer, at
SeptemberSeptember
3030,
20172017.
Deb Sikes Designer
Trial Balance
September 30, 2017
Balance
Account Title
Debit
Credit
Cash
$15,500
Accounts Receivable
850
Office Supplies
600
Prepaid Insurance
600
Furniture
2,300
Land
30,000
Accounts Payable1
$600
Utilities Payable
500
Unearned Revenue
2,300
Sikes, Capital
48,000
Sikes, Withdrawals
3,600
Service Revenue
6,250
Salaries Expense
3,000
Rent Expense
700
Utilities Expense
500
Total
$57,650
$57,650
Move your pointer over or tap on the cells with red arrows to see incorrect answers.
HarringtonHarrington
Carpentry had the following accounts and account balances after adjusting entries. Assume all accounts
have normal balances. Prepare the adjusted trial balance for
HarringtonHarrington
Carpentry as of
DecemberDecember
3131,
20162016.
Cash
Accounts Receivable
Office Supplies
Equipment
8,500
Accumulated Depreciation-Equipment
Land
6,500
Accounts Payable
250
Utilities Payable
250
Unearned Revenue
400
Harrington, Capital
Harrington, Withdrawals