Financial Accounting Posting To Ledger Accounts Homework Help
- December 1, 2017
- Posted by:
- Category: Accounting QA
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Jane Kent is a licensed CPA. During the first month of operations of her business, Jane Kent, Inc., the following events and transactions occurred.
May 1 Stockholders invested $25,000 cash in exchange for common stock.
2 Hired a secretary-receptionist at a salary of $2,000 per month.
3 Purchased $2,500 of supplies on account from Read Supply Company.
7 Paid office rent of $900 cash for the month.
11 Completed a tax assignment and billed client $2,100 for services provided.
12 Received $3,500 advance on a management consulting engagement.
17 Received cash of $1,200 for services completed for H. Arnold Co.
31 Paid secretary-receptionist $2,000 salary for the month.
31 Paid 40% of balance due Read Supply Company.
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Jane uses the following chart of accounts:
No. 101 Cash,
No. 112 Accounts Receivable,
No. 126 Supplies,
No. 201 Accounts Payable,
No. 205 Unearned Revenue,
No. 311 Common Stock,
No. 400 Service Revenue,
No. 726 Salaries Expense, and
No. 729 Rent Expense.
Instructions
(a) Journalize the transactions.
(b) Post to the ledger accounts.
(c) Prepare a trial balance on May 31, 2008.
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