Question

Journalizing transactions, posting journal entries to four-column accounts,

and preparing a trial balance

Vince Perez opened a law office on April 1, 2015. During the first month of operations, the

business completed the following transactions:

Apr 1

Perez contributed $62,000 cash to the business, Vince Perez, Attorney. The business

issued common stock to Perez.

3

Purchased office supplies, $500, and furniture, $2,000, on account.

4

Performed legal services for a client and received $1,900 cash.

7

Purchased a building, $120,000 and land, $30,000. The business paid $50,000 cash

and signed a note payable to the bank for the remaining amount.

11

Prepared legal documents for a client on account, $1,100.

15

Paid assistant’s semimonthly salary, $920.

16

Paid for the office supplies purchased on April 3 on account.

18

Received $1,700 cash for helping a client sell real estate.

19

Defended a client in court and billed the client for $700.

25

Received a bill for utilities, $300. The bill will be paid next month.

28

Received cash on account, $800.

29

Paid $1,200 cash for a 12-month insurance policy starting on May 1.

29

Paid assistant’s semimonthly salary, $920.

30

Paid monthly rent expense, $730.

30

Paid cash dividends of $2,700

Answer 1

Journal entries, Ledger accounts and Trial Balance are as prepared below: