Question

Question:Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance The following transactions occurred during the month for Teresa Parker, CPA:

Jun. 1 Parker opened an accounting firm by contributing $13,200cashandofficefurniturewithafairmarketvalueof$5,300 in exchange for common stock.

5 Paid monthly rent of \(1,300.

9 Purchased office supplies on account, \)600.

14 Paid employee’s salary, \(1,900.

18 Received a bill for utilities to be paid next month, \)370.

21 Paid \(500 of the accounts payable created on June 9.

25 Performed accounting services on account, \)5,700.

28 Paid cash dividends of $6,700

Requirements 1. Open the following four-column accounts of Teresa Parker, CPA: Cash, 110; Accounts Receivable, 120; Office Supplies, 130; Office Furniture, 140; Accounts Payable, 210; Utilities Payable, 220; Common Stock, 310; Dividends, 320; Service Revenue, 410; Salaries Expense, 510; Rent Expense, 520; and Utilities Expense, 530.

Short answer

T-account are opened in step 2.

Step-by-step solution

Step-by-Step SolutionStep 1: Definition of Common Stock

The common stock is defined as the financial instrument which represents the ownership of the company

Opening of Accounts

Cash Account Number - 110
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

Accounts Receivables Account Number - 120
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

Office Supplies Account Number - 130
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

Office Furniture Account Number - 140
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

Accounts Payable Account Number - 210
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

Utilities Payable Account Number - 220
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

Common Stock Account Number - 310
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

DividendsAccount Number - 320
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

Service Revenue Account Number - 410
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

Salaries Expense Account Number - 510
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

Rent Expense Account Number - 520
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit

Utilities Expense Account Number - 530
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit