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 2. Journalize the transactions, and then post the journal entries to the four-column accounts. Explanations are not required for the journal entries. Keep a running balance in each account. Assume the journal entries are recorded on page 10 of the journal.

Short answer

The required journal entries are passed in step 1 and four-column accounts is also prepared in step 2.

Step-by-step solution

Step-by-Step SolutionStep 1:Journal Entries

	Journal entry
Date	Particulars	Debit ($)	Credit ($)
June
1	Cash	$13,200
	Office Furniture	$5,300
	Common Stock		$18,500
5	Rent Expense	$1,300
	Cash		$1,300
9	Office Supplies	$600
	Accounts Payable		$600
14	Salary Expense	$1,900
	Cash		$1,900
18	Utilities Expense	$370
	Utilities Payable		$370
21	Accounts Payable	$600
	Cash		$600
25	Accounts Receivables	$5,700
	Service Revenue		$5,700
28	Dividends	$6,700
	Cash		$6,700

Opening of Accounts

Cash Account Number - 110
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
Jun 1	Common stock		$13,200		$13,200
5	Rent Expense			$1,300	$11,900
14	Salary Expense			$1,900	$10,000
21	Accounts Payable			$500	$9,500
28	Dividends			$6,700	$2,800

Accounts Receivables Account Number - 120
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
June 25	Service Revenue		$5,700		$5,700

Office Supplies Account Number - 130
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
June 9	Accounts Payable		$600		$600

Office Furniture Account Number - 140
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
Jun 1	Common stock		$5,300		$5,300

Accounts Payable Account Number - 210
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
June 9	Office Supplies			$600		$600
June 21	Cash		$500			$100

Utilities Payable Account Number - 220
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
June 18	Utility Expense			$370		$370

Common Stock Account Number - 310
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
Jun 1	Cash			$13,200		$13,200
	Furniture			$5,300		$5,300

Dividends Account Number - 320
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
June 28	Cash		$6,700		$6,700

Service Revenue Account Number - 410
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
June 25	Accounts Receivables			$5,700		$5,700

Salaries Expense Account Number - 510
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
June 14	Cash		$1,900		$1,900

Rent Expense Account Number – 520
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
June 5	Cash		$1,300		$1,300

Utilities Expense Account Number - 530
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
June 18	Utilities Payable		$370		$370