Question

Learning Objectives 3, 4 4. Total Debits $58,300 P2-30A Journalizing transactions, posting journal entries to T-accounts, and 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 transactions: Sep. 1 4 6 1. 10 14 15 17 20 25 28 29 30 30 30 30 Received $48,000 cash and issued common stock to Simpson. Purchased office supplies, $1,200, and furniture, $1,300, on account. Performed services for a law firm and received $1,900 cash. Paid $18,000 cash to acquire land to be used in operations. Performed services for a hotel and received its promise to pay the $1,200 within one week. Paid for the furniture purchased on September 4 on account. Paid assistant's semimonthly salary, $1,500. Received cash on account, $1,000. Prepared a design for a school on account, $650. Received $2,100 cash for design services to be performed in October. Received $2,900 cash for consulting with Plummer & Gordon. Paid $600 cash for a 12-month insurance policy starting on October 1. Paid assistant's semimonthly salary, $1,500. Paid monthly rent expense, $600. Received a bill for utilities, $350. The bill will be paid next month. Paid cash dividends of $3,700.

Please explain your answer. Thank you.

Answer 1

Requirement 1:

Date	Account title and explanation	Debit	Credit
Sep.1	Cash	$48,000
	Common stock		$48,000
	[Issuance of common stock]
Sep.4	Office supplies	$1,200
	Furniture	$1,300
	Accounts payable		$2,500
	[Purchased supplies and furniture on account]
Sep.6	Cash	$1,900
	Service revenue		$1,900
	[Cash received for services]
Sep.7	Land	$1,800
	Cash		$18,000
	[Purchase of land for cash]
Sep.10	Accounts receivable	$1,200
	Service revenue		$1,200
	[Services performed on accout]
Sep.14	Accounts payable	$1,300
	Cash		$1,300
	[Paid for the furniture purchased on Sep 4]
Sep.15	Salaries expense	$1,500
	Cash		$1,500
	[Salaries paid]
Sep.17	Cash	$1,000
	Accounts receivable		$1,000
	[Collections from customers]
Sep.20	Accounts receivable	$650
	Service revenue		$650
	[Services performed on accout]
Sep.25	Cash	$2,100
	Unearned revenue		$2,100
	[Cash collected in advance for services]
Sep.28	Cash	$2,900
	Service revenue		$2,900
	[Cash received for services]
Sep.29	Prepaid insurance	$600
	Cash		$600
	[Cash paid in advance for insurance]
Sep.30	Salaries expense	$1,500
	Cash		$1,500
	[Cash paid for salaries]
Sep.30	Rent expense	$600
	Cash		$600
	[Cash paid for rent]
Sep.30	Utilities expense	$350
	Utilities payable		$350
	[Accrued utilities expense]
Sep 30	Cash dividends	$3,700
	Cash		$3,700
	[Paid cash dividends]

Requirement 2&3:

Cash					Common stock
Sep.1	$48,000	Sep.7	$1,800				Sep.1	$48,000
Sep.6	$1,900	Sep.14	$1,300				Bal.	$48,000
Sep.17	$1,000	Sep.15	$1,500
Sep.25	$2,100	Sep.29	$600		Dividends
Sep.28	$2,900	Sep.30	$1,500		Sep 30	$3,700
		Sep.30	$600		Bal.	$3,700
		Sep 30	$3,700
Bal.	$44,900				Service revenue
							Sep.6	$1,900
Accounts receivable							Sep.10	$1,200
Sep.10	$1,200	Sep.17	$1,000				Sep.20	$650
Sep.20	$650						Sep.28	$2,900
Bal.	$850						Bal.	$6,650
Office Supplies					Salaries expense
Sep.4	$1,200				Sep.15	$1,500
Bal.	$1,200				Sep.30	$1,500
					Bal.	$3,000
Prepaid insurance
Sep.29	$600				Rent expense
Bal.	$600				Sep.30	$600
					Bal.	$600
Land
Sep.7	$1,800				Utilities expense
Bal.	$1,800				Sep.30	$350
					Bal.	$350
Furniture
Sep.4	$1,300
Bal.	$1,300
Accounts payable
Sep.14	$1,300	Sep.4	$2,500
		Bal.	$1,200
Utilities payable
		Sep.30	$350
		Bal.	$350
Unearned revenue
		Sep.25	$2,100
		Bal.	$2,100

Requirement 4:

Trial Balance
September 30,2018
Account title	Debit	Credit
Cash	$44,900
Accounts receivable	$850
Office Supplies	$1,200
Prepaid insurance	$600
Land	$1,800
Furniture	$1,300
Accounts payable		$1,200
Utilities payable		$350
Unearned revenue		$2,100
Common stock		$48,000
Dividends	$3,700
Service revenue		$6,650
Salaries expense	$3,000
Rent expense	$600
Utilities expense	$350
Total	$58,300	$58,300