SOLUTION
Liabilities:
Accounts Payable
$ 1,800
Utilities Payable
Unearned Revenue
Notes Payable
Assets:
Cash
$ 37,000
Accounts Receivable
Office Supplies
Office Equipment
Building
Land
Total assets
Problems (Group A)
P2-29A Journalizing transactions, posting journal entries to T-accounts, and preparing a trial
balance
Learning Objectives 3, 4
2. Cash Balance $69,060
Vincent Yarwood practices medicine under the business title Vincent Yarwood, M.D. During July, the
medical practice completed the following transactions:
The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Accounts
Payable; Advertising Payable; Unearned Revenue; Notes Payable; Common Stock; Dividends; Service
Revenue; Salaries Expense; Rent Expense; Utilities Expense; and Advertising Expense.
Requirements
1. Journalize each transaction. Explanations are not required.
2. 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.
3. Prepare the trial balance of Vincent Yarwood, M.D., as of July 31, 2017.
SOLUTION
Requirement 1
Date
Accounts and Explanation
Post
Ref.
Credit
July 1
Cash
Common Stock
68,000
Rent Expense
Cash
Land
Cash
17,000
Office Supplies
Accounts Payable
Cash
Notes Payable
24,000
Accounts Payable
Cash
Advertising Expense
Advertising Payable
Cash
Accounts Receivable
Service Revenue
11,500
Salaries Expense
Rent Expense
Utilities Expense
Cash
Cash
Unearned Revenue
Dividends
Cash
P2-29A, cont.
Requirement 2
Cash
550 Jul. 5
Jul. 22 1,700
1,800 Jul. 10
17,000 Jul. 9
100 Bal.
1,700 Jul. 22
3,550 Jul. 31
7,400 Jul. 31
290 Jul. 28
290 Bal.
Jul. 31 5,500
1,260 Jul. 31
Bal. 5,500
1,260 Bal.
Jul. 31 7,400
Bal. 7,400
Office Supplies
Notes Payable
Jul. 10 1,800
24,000 Jul. 19
Bal. 1,800
24,000 Bal.
Land
Common Stock
Jul. 9 17,000
68,000 Jul. 1
Bal. 17,000
68,000 Bal.
P2-29A, cont.
Requirement 3
VINCENT YARWOOD, MD
Trial Balance
July 31, 2017
Account Title
Balance
Debit
Credit
Cash
$ 69,060
Accounts Receivable
5,500
Office Supplies
1,800
Land
Accounts Payable
Advertising Payable
Unearned Revenue
Notes Payable
Common Stock
Dividends
7,400
Service Revenue
Salaries Expense
2,000
Rent Expense
1,550
Utilities Expense
Advertising Expense
Total
P2-30A Journalizing transactions, posting journal entries to T-accounts, and preparing a trial
balance
Learning Objectives 3, 4
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:
Requirements
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; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent
Expense; 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, using transaction dates as posting references in the ledger
accounts. Label the balance of each account Bal.
4. Prepare the trial balance of Doris Stann, Designer, as of September 30, 2017.
SOLUTION
Requirement 1
Date
Accounts and Explanation
Posting
Ref.
Debit
Credit
Sep. 1
Cash
47,000
Common Stock
47,000
Office Supplies
700
Furniture
Accounts Payable
Cash
Service Revenue
Land
20,000
Cash
20,000
10
Accounts Receivable
900
Service Revenue
900
14
Accounts Payable
Cash
15
Salaries Expense
Cash
17
Cash
700
Accounts Receivable
700
20
Accounts Receivable
700
Service Revenue
700
25
Cash
Unearned Revenue
28
Cash
Service Revenue
29
Prepaid Insurance
Cash
30
Salaries Expense
Cash
P2-30A, cont.
30
Utilities Expense
30
Dividends
Requirements 2 and 3
Sep. 17 700
1,480 Sep. 15
Sep. 25 2,200
2,400 Sep. 29
Sep. 28 2,600
1,480 Sep. 30
500 Sep. 30
400 Sep. 30
3,000 Sep. 30
400 Bal.
Accounts Receivable
Sep. 10 900
700 Sep. 17
2,200 Sep. 25
Sep. 20 700
2,200 Bal.
Bal. 900
Cash
Accounts Payable
Sep. 1 47,000
20,000 Sep. 7
Sep. 14 1,600
2,300 Sep. 4
Sep. 6 1,400
1,600 Sep. 14
700 Bal.
Office Supplies
Common Stock
Sep. 4 700
47,000 Sep. 1
Bal. 700
47,000 Bal.
Prepaid Insurance
Dividends
Sep. 29 2,400
Sep. 30 3,000
Bal. 2,400
Bal. 3,000
Sep. 4 1,600
1,400 Sep. 6
Bal. 1,600
900 Sep. 10
700 Sep. 20
Land
2,600 Sep. 28
Sep. 7 20,000
5,600 Bal.
Bal. 20,000
P2-30A, cont.
Sep. 30 500
Bal. 500
Utilities Expense
Sep. 30 400
Requirement 4
DORIS STANN, DESIGNER
Trial Balance
September 30, 2017
Account Title
Balance
Debit
Credit
Cash
$ 23,440
Accounts Receivable
900
Office Supplies
700
Prepaid Insurance
Furniture
Land
Accounts Payable
Utilities Payable
Unearned Revenue
Common Stock
Dividends
Service Revenue
Salaries Expense
Rent Expense
Utilities Expense
Total
Salaries Expense
Sep. 15 1,480
Sep. 30 1,480
Bal. 2,960
P2-31A Journalizing transactions, posting journal entries to four-column accounts, and preparing
a trial balance
Learning Objectives 3, 4
3. Cash Balance $23,400
Timothy Monroe opened a law office on January 1, 2017. During the first month of operations, the
business completed the following transactions:
Requirements
1. 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.
2. 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.
3. 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.
4. Prepare the trial balance of Timothy Monroe, Attorney, at January 31, 2017.
SOLUTION
Requirements 1 and 3
Date
Accounts and Explanation
Posting
Ref.
Debit
Credit
Jan. 1
Cash
101
62,000
Common Stock
301
62,000
Office Supplies
121
500
Furniture
141
2,000
Accounts Payable
201
2,500
Cash
101
1,600
Service Revenue
411
1,600
Building
151
70,000
Land
161
29,000
Cash
101
35,000
Notes Payable
221
64,000
11
Accounts Receivable
111
300
Service Revenue
411
300
15
Salaries Expense
511
1,180
Cash
101
1,180
16
Accounts Payable
201
500
Cash
101
500
18
Cash
101
2,000
Service Revenue
411
2,000
19
Accounts Receivable
111
1,400
Service Revenue
411
1,400
25
Utilities Expense
531
550
Utilities Payable
211
550
29
Cash
101
700
Accounts Receivable
111
700
30
Prepaid Insurance
131
840
Cash
101
840
30
Salaries Expense
511
1,180
P2-31A, cont.
31
Rent Expense
521
1,300
Cash
101
1,300
31
Dividends
311
2,900
Cash
101
2,900
Requirements 2 and 3
CASH
Account No. 101
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Jan. 1
J1
62,000
62,000
Jan. 4
J1
1,600
63,600
Jan. 7
J1
35,000
28,600
Jan. 15
J1
1,180
27,420
Jan. 16
J1
500
26,920
Jan. 18
J1
2,000
28,920
Jan. 29
J1
29,620
Jan. 30
J1
840
28,780
Jan. 30
J1
1,180
27,600
Jan. 31
J1
1,300
26,300
Jan. 31
J1
2,900
23,400
ACCOUNTS RECEIVABLE
Account No. 111
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Jan. 11
J1
300
300
Jan. 19
J1
1,400
1,700
Jan. 29
J1
700
1,000
OFFICE SUPPLIES
Account No. 121
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Jan. 3
J1
500
500
P2-31A, cont.
PREPAID INSURANCE
Account No. 131
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Jan. 30
J1
840
840
FURNITURE
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Jan. 3
J1
2,000
BUILDING
Account No. 151
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Jan. 7
J1
70,000
70,000
LAND
Account No. 161
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Jan. 7
J1
29,000
29,000
ACCOUNTS PAYABLE
Account No. 201
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Jan. 3
J1
2,500
2,500
Jan. 16
J1
500
2,000
UTILITIES PAYABLE
Account No. 211
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Jan. 25
J1
550
550
NOTES PAYABLE
Account No. 221
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Jan. 7
J1
64,000
64,000
P2-31A, cont.
COMMON STOCK
Account No. 301
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Jan. 1
J1
62,000
62,000
DIVIDENDS
Account No. 311
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Jan. 31
J1
2,900
2,900
SERVICE REVENUE
Account No. 411
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Jan. 4
J1
1,600
1,600
Jan. 11
J1
1,900
Jan. 18
J1
2,000
3,900
Jan. 19
J1
1,400
5,300
SALARIES EXPENSE
Account No. 511
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Jan. 15
J1
1,180
1,180
Jan. 30
J1
1,180
2,360
RENT EXPENSE
Account No. 521
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Jan. 31
J1
1,300
1,300
UTILITIES EXPENSE
Account No. 531
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Jan. 25
J1
P2-31A, cont.
Requirement 4
TIMOTHY MONROE, ATTORNEY
Trial Balance
January 31, 2017
Account Title
Balance
Debit
Credit
Cash
$ 23,400
Accounts Receivable
1,000
Office Supplies
500
Prepaid Insurance
840
Furniture
2,000
Building
Land
Accounts Payable
Utilities Payable
Notes Payable
Common Stock
Dividends
2,900
Service Revenue
Salaries Expense
2,360
Rent Expense
1,300
Utilities Expense
Total
P2-32A Journalizing transactions, posting journal entries to four-column accounts, and preparing
a trial balance
Learning Objectives 3, 4
3. Cash Balance $16,700
The trial balance of Steve Mentz, CPA, is dated March 31, 2017:
During April, the business completed the following transactions:
Requirements
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. 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; Dividends, 33; Service Revenue, 41; Salaries Expense, 51; and Rent Expense,
52.
3. 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.
4. Prepare the trial balance of Steve Mentz, CPA, at April 30, 2017.
SOLUTION
Requirement 1
Date
Accounts and Explanation
Post.
Ref.
Debit
Credit
Apr. 4
Cash
11
1,000
Accounts Receivable
12
1,000
Received cash from client on account.
Accounts Receivable
12
5,800
Service Revenue
41
5,800
account.
Accounts Payable
21
1,500
Cash
11
1,500
Paid cash on account.
P2-32A, cont.
Apr. 14
Furniture
14
4,600
Accounts Payable
21
4,600
Purchased furniture on account.
15
Automobile
15
8,000
Common Stock
31
8,000
18
Office Supplies
13
Accounts Payable
21
19
Cash
11
2,900
Accounts Receivable
12
2,900
Received cash on account.
20
Dividends
33
8,000
Cash
11
8,000
Paid cash dividends.
21
Cash
11
5,400
Service Revenue
41
5,400
Received cash for consulting work.
24
Cash
11
1,200
Unearned Revenue
22
1,200
27
Rent Expense
52
Cash
11
Paid office rent.
28
Salaries Expense
51
1,600
Cash
11
1,600
Paid employee salary.
P2-32A, cont.
Requirements 2 and 3
CASH
Account No. 11
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Mar. 31
Balance
18,000
Apr. 4
J5
1,000
19,000
Apr. 13
J5
1,500
17,500
Apr. 19
J5
2,900
20,400
Apr. 20
J5
8,000
12,400
Apr. 21
J5
5,400
17,800
Apr. 24
J5
1,200
19,000
Apr. 28
J5
1,600
16,700
ACCOUNTS RECEIVABLE
Account No. 12
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Mar. 31
Balance
9,500
Apr. 4
J5
1,000
8,500
Apr. 8
J5
5,800
14,300
Apr. 19
J5
2,900
11,400
OFFICE SUPPLIES
Account No. 13
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Mar. 31
Balance
1,000
Apr. 18
J5
1,500
FURNITURE
Account No. 14
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Apr. 14
J5
4,600
4,600
AUTOMOBILE
Account No. 15
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Apr. 15
J5
8,000
8,000
P2-32A, cont.
LAND
Account No. 16
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Mar. 31
Balance
26,000
ACCOUNTS PAYABLE
Account No. 21
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Mar. 31
Balance
5,500
Apr. 13
J5
1,500
4,000
Apr. 14
J5
4,600
8,600
Apr. 18
J5
9,100
UNEARNED REVENUE
Account No. 22
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Apr. 24
J5
1,200
1,200
COMMON STOCK
Account No. 31
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Mar. 31
Balance
44,100
Apr. 15
J5
8,000
52,100
DIVIDENDS
Account No. 33
Date
Item
Post Ref.
Debit
Credit
Balance
Debit
Credit
Apr. 20
J5
8,000
8,000
SERVICE REVENUE
Account No. 41
Date
Item
Post Ref.
Debit
Credit
Debit
Credit
Mar. 31
Balance
10,800
Apr. 8
J5
5,800
16,600
Apr. 21
J5
5,400
22,000