Journalizing, Posting, and Preparing a Trial Balance
Georgian Enterprises uses the following general ledger accounts in its accounting system. Listed for each account is its account number and balance as of January 1, 2003.
Account#
Cash 101 $60,000
Supplies 121 10,000
Office Equipment 151 170,000
Accumulated
Depreciation—OE 152 45,000
Accounts Payable 201 70,000
Common Stock 301 90,000
Retained Earnings 350 35,000
Fee Revenue 401 0
Selling Expenses 501 0
Salary Expense 511 0
Supplies Expense 531 0
In early January 2003, Georgian Enterprises engaged in the following transactions:
January 2 Paid $30,000 on accounts payable
January 3 Purchased $1,100 of supplies for cash
January 4 Purchased office equipment for $2,700 cash
January 6 Earned and received fees (revenues) from customers of $16,400
January 7 Paid selling expenses of $7,100
January 7 Paid employee salaries of $5,200
Required:
(1) Why do some of Georgian’s accounts have zero balances at the beginning of January?
(2) Prepare a journal entry for each of the transactions listed.
(3) Prepare four-column general ledger accounts for Georgian Enterprises as of January 1, 2003. Post the January 2003 journal entries to these accounts.
(4) Prepare a trial balance for Georgian Enterprises as of January 7, 2003.