Journalizing transactions, posting to accounts in four-column format, and preparing a trial balance
The trial balance of Sam Mitchell, CPA, is dated January 31, 2012:
|
SAM MITCHELL, CPA
Trial Balance
31-Jan-12
|
|
Account No.
|
Account
|
Debit
|
Credit
|
|
11
|
Cash
|
$ 7,000
|
|
|
12
|
Accounts receivable
|
10,500
|
|
|
13
|
Supplies
|
600
|
|
|
14
|
Land
|
17,000
|
|
|
21
|
Accounts payable
|
|
4,700
|
|
31
|
Mitchell, capital
|
|
30,400
|
|
3
|
Mitchell, drawing
|
|
|
|
41
|
Service revenue
|
|
|
|
51
|
Salary expense
|
|
|
|
52
|
Rent expense
|
|
|
|
Total
|
$35,100
|
$35,100
|
During February, Mitchell or his business completed the following transactions:
Feb 4 Collected $4,000 cash from a client on account
8 Performed tax services for a client on account,$4,600.
13 Paid business debt on account, $2,400.
18 Purchased office supplies on account, $900.
20 Mitchell withdrew cash of $2,200.
21 Mitchell paid for a deck for his private residence using personal funds, $8,000.
22 Received $2,300 cash for consulting work just completed.
27 Paid office rent, $500.
29 Paid employee salary, $1,600.
Requirements
1. Record the February transactions in the journal. Include an explanation for each entry.
2. Post the transactions to four-column accounts in the ledger, using dates, account numbers, journal references, and posting references. Open the ledger accounts listed in the trial balance, together with their balances at January 31.
3. Prepare the trial balance of Sam Mitchell, CPA, at February 29, 2012.