Question

c. Prepare a trial balance dated September 30, 2011. Assume accounts with zero balances are not included in the trial balance. LOS EXERCISE 3.12 Journalizing, Posting, Los and Preparing a Trial Balance LOS LOS Herrold Consulting incorporated on February 1, 2011. The company engaged in the following transactions during its first month of operations: Feb. 1 Issued capital stock in exchange for $750,000 cash. Feb. 5 Borrowed $50,000 from the bank by issuing a note payable. Feb. 8 Purchased land, building, and office equipment for $600,000. The value of the land was $100,000, the value of the building was $450,000, and the value of the office equipment was $50,000. The company paid $300,000 cash and issued a note payable for the balance Feb. 11 Purchased office supplies or $600 on account. The supplies will last for several months. Feb. 14 Paid the local newspaper $400 for a full-page advertisement. The ad will appear in print on February 18 Feb. 20 Several of the inkjet printer cartridges that Herrold purchased on February 11 were defective. The cartridges were returned and the office supply store reduced Herrold's outstanding balance by $100. Feb. 22 Performed consulting services for $6.000 cash. Feb. 24 Billed clients $9.000. Feb. 25 Paid salaries of $5,000 Paid the entire outstanding balance owed for office supplies purchased on February 11. Feb 28 回口 D D H BD T009

Answer 1

Journal entries Accounts used Debit 475000D credit 415700 $50D OD $-5000 Date Rebi cash capital stock (Issuced capital stock for cash) Feb 5. cash , Note Payalue (Borrowed from Bank by Essuing note payales feb 8. Land Building offre equipment Lododo 4450000 $50000 $3 DUDU $ $300 ML $600 Note payalue (Purchased land, Building 4 office equipment partly by cail & partly by note payalee) febii office supplies $600 Accounts payalue Febly Advertising expense 4400 cash l Being adves Riement et ponses pald) Feb2o. Accounts payalue $100 office supplies (Defective office supplies returned) $400 $LUD feb 22. carb $ CODO $6000 client cervice Revenue (cash recolved for coniulting services provided to client, 17/17 =

41500. febry Account Receivatie client service Revenue (Blued customers for services provided) $5000 SODO Feb 15 salaria expense cash (Being salariu paid by cash) Febas Accounts payature cash Coutstanding balance for office equipment (suprue paid) $500 -Accounts Receivalue Account pate Paiuculars Arbeteni sile Particular Amennt Feb to client feb 24 Service 49000 eld 49000 Revenue $9000 $9000 By Balance Mari To Balance bid 49000 Olfice Supplier Account Date Particular Amount Dale Particulars leb To Account $600 febao By Account payable palable febar By cash Amount $100. 3 500. $600 600. 18/18 =

Date * Cododd Feb 5 By cash కులంగా Febs By tand, building $ 300! Mar! By Balance bid 800 Mari By Balance bid $1500D Motu Payam Account Particulars Amount Date Pas Hullar Febas y Balance CH Accoron Accounts Payawetk. Amouent Date Particulars Pebil, By office si supplies 4100 Soupplies febas To cash $500 $600 $600 Capital Stock ile Particulars Amount Date Particulars Rebus By To Batancerk $ 75000D Febi By Amount caib $150DUD Henry Consulting By Bataned $1500m client sensie Revenue Ali Particulars Amount Date Particulars Amount feb Y Balance cl $4500D Pebas By carb Pebay By Accounts receivalue Date I particulars Feb20 To offree е -Amrunt $600. Date $750000 $150DID $6.000. $900. +150 DO 315000 Advertising expense ale Dale Particulars -ArmountI Date Particulars Amount $400 | Reb Balanceeld bts To cau By $400 18 $400 $400 $40. Mars TD Balance bld 19/19 =

By Balance eld $5000, Salaries Expense the Partiallars Amount Date Particulars Amunt feb 25 10 cash $5000. feb SODO $5000 Mari to Balance Bld. $50DD. Amount Land, Building & office equipmentale Date Particulars Amount Date Particulars Feb 8 To cach $ 3000DD Febat Bag Bedance Gd TO Note By Henry $ 300000 payable consulting $ $600000 $6000a 4G σD σου Mart To Balance bld $600000 Cash Accocent Particulars Ampount Date Particulars Anment febi To capital stock $150000 Feb 8 By land, building $30000D. feb5 to note payable $ 50DOV Feb 14 By Adver Hbing $400. $6000 expenses serce Revenue Febas By Salaries $ 5000 Febas By Balance eld $500600 Febs. To client $ SOGOVO $806 ODD Mari TD Balance bld 4500 Goo. 20/20 =