Question

30A Journalizing transactions, posting ¡ournal entries to T-accounts, and D0 Learning ob preparing a trial balance Ann Simpson started her practice as a design consultant on September 1, 2018. During the first month of operations, the business completed the following transacions 4. Total Debits Received $48,000 cash and gave capital to Simpson 4 Purchased office supplies, $1,200, and furniture, $1,300, on account. 6 Performed services for a law firm and received $1,900 casth. 7 Paid $18,000 cash to acquire land to be used in operations. 10 Performed services for a hotel and received its promise to pay the Sep. 1 $1,200 within one week 14 Paid for the furniture purchased on September 4 on account. 15 Paid assistant's semimonthly salary, $1,500 17 Received cash on account, $1,000. 20 Prepared a design for a school on account, $650. 25 Received $2,100 cash for design services to be performed in October 28 Received $2,900 cash for consulting with Plummer & Gordon. 29 Paid $600 cash for a 12-month insurance policy starting on October 1 30 Paid assistant's semimonthly salary, $1,500 30 Paid monthly rent expense, 5600. 30 Received a bill for utilities, $350. The bilt will be paid next month. 30 Simpson withdrew cash of $3,700. Requirements 1. Record each transaction in the journal using the following account titles: Cash; Accounts Receivable Office Supplies, Prepaid Insurance; Land; Furniture, Accounts Payable; Utilites Payable; Unearned Revenue; Simpson, Capital; Simpson, Withdrawals; Service Revenue; Salaries Expense; Rent Expense; and Urilitics Expensc. 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 Ann Simpson, Designet, as of September 30, 2018.

Answer 1

1.

Date	General Journal	Debit	Credit
		$	$
Sep 1	Cash	48,000
	Simpson, Capital		48,000
Sep 4	Office Supplies	1,200
	Furniture	1,300
	Accounts Payable		2,500
Sep 6	Cash	1,900
	Service Revenue		1,900
Sep 7	Land	18,000
	Cash		18,000
Sep 10	Accounts Receivable	1,200
	Service Revenue		1,200
Sep 14	Accounts Payable	1,300
	Cash		1,300
Sep 15	Salaries Expense	1,500
	Cash		1,500
Sep 17	Cash	1,000
	Accounts Receivable		1,000
Sep 20	Accounts Receivable	650
	Service Revenue		650
Sep 25	Cash	2,100
	Unearned Revenue		2,100
Sep 28	Cash	2,900
	Service Revenue		2,900
Sep 29	Prepaid Insurance	600
	Cash		600
Sep 30	Salaries Expense	1,500
	Cash		1,500
Sep 30	Rent Expense	600
	Cash		600
Sep 30	Utilities Expense	350
	Utilities Payable		350
Sep 30	Simpson, Withdrawals	3,700
	Cash		3,700

2 & 3 :

Cash:

Sep 1	48,000	Sep 7	18,000
Sep 6	1,900	Sep 14	1,300
Sep 17	1,000	Sep 15	1,500
Sep 25	2,100	Sep 29	600
Sep 28	2,900	Sep 30	1,500
		Sep 30	600
		Sep 30	3,700
Bal	28,700

Accounts Receivable:

Sep 10	1,200	Sep 17	1,000
Sep 20	650
Bal.	850

Office Supplies:

Sep 4	1,200
Bal.	1,200

Prepaid Insurance:

Sep 29	600
Bal.	600

Land:

Sep 7	18,000
Land	18,000

Furniture:

Sep 4	1,300
Bal.	1,300

Accounts Payable:

Sep 14	1,300	Sep 4	2,500
		Bal	1,200

Unearned Revenue:

		Sep 25	2,100
		Bal.	2,100

Utilities Payable:

		Sep 30	350
		Bal.	350

Simpson, Capital:

		Sep 1	48,000
		Bal	48,000

Simpson, Withdrawals:

Sep 30	3,700
Bal	3,700

Service Revenue:

		Sep 6	1,900
		Sep 10	1,200
		Sep 25	650
		Sep 28	2,900
		Bal	6,650

Salaries Expense:

Sep 15	1,500
Sep 30	1,500
Bal	3,000

Rent Expense:

Sep 30	600
Bal	600

Utilities Expense:

Sep 30	350
Bal	350

4.

Ann Simpson, Designer Trial Balance September 30, 2018
Account Titles	Debit	Credit
	$	$
Cash	28,700
Accounts Receivable	850
Office Supplies	1,200
Prepaid Insurance	600
Land	18,000
Furniture	1,300
Accounts Payable		1,200
Utilities Payable		350
Unearned Revenue		2,100
Simpson, Capital		48,000
Simpson, Withdrawals	3,700
Service Revenue		6,650
Salaries Expense	3,000
Rent Expense	600
Utilities Expense	350
Totals	$ 58,300	$ 58,300