Question

Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance

The trial balance of Shawn Merry, CPA, is dated March 31, 2018: During April, the business completed the following transactions:

Cash 11,000

Office Supplies 400

Accounts Receivable 16,500

Land 30,000

Furniture 0

Automobile 0

Accounts Payable 3,800

Unearned Revenue 0

Common Stock 52,300

Dividends 0

Rent Expense 800

Salaries Expense 5,600

Service Revenue 8,200

Total Balance \( 64,300 64,300

During April, the business completed the following transactions:

Apr. 4 Collected \)2,500 cash from a client on account.

8 Performed tax services for a client on account, \(5,400.

13 Paid \)3,000 on account.

14 Purchased furniture on account, \(3,600.

15 Merry contributed his personal automobile to the business in exchange for common stock. The automobile had a market value of \)9,500.

18 Purchased office supplies on account, \(900.

19 Received \)2,700 for tax services performed on April 8.

20 Paid cash dividends of \(6,500.

21 Received \)5,700 cash for consulting work completed.

24 Received \(2,400 cash for accounting services to be completed next month.

27 Paid office rent, \)600.

28 Paid employee salary, $1,700.

Requirements

3. Post the journal entries to four-column accounts in the ledger, using dates, account numbers, journal references, and posting references. Assume the journal entries were recorded on page 5 of the journal.

Short answer

Dividends are the profits that are distributed to the shareholders of the company and required accounts are prepared in step 2.

Step-by-step solution

Definition of Accounts Receivables

The dividends are defined as the part of the profit distributed among the owners or the shareholders of the business.

Preparing the four-column accounts

Cash Account Number – 11
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
Apr					$11,000
4	Accounts Receivables		$2,500		$13,500
13	Accounts Payable			$3,000	$10,500
19	Accounts Receivables		$2,700		$13,200
20	Dividends			$6,500	$6,700
21	Service Revenue		$5,700		$12,400
24	Unearned Revenue		$2,400		$14,800
27	Rent Expense			$600	$14,200
28	Salary Expense			$1,700	$12,500

Accounts Receivables Account Number - 12
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$16,500
Apr 8	Cash			$2,500	$14,000
19	Cash			$2,700	$11,300

Office Supplies Account Number - 13
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$400
Apr 18	Accounts Payable		$900		$1,300

Land Account Number - 14
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$30,000

Furniture Account Number - 15
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$0
Apr 14	Accounts Payable		$3,600		$3,600

Automobile Account Number – 16
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$0
Apr 15	Common Stock		$9,500		$9,500

Accounts Payable Account Number - 21
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
						$3,800
Apr 13	Cash		$3,000			$800
14	Furniture			$3,600		$4,400
18	Office Supplies			$900		$5,300

Unearned Revenue Account Number - 22
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
						$0
Apr 24	cash			$2,400		$2,400

Common Stock Account Number – 31
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
						$52,300
Apr 15	Automobile			$9,500		$61,800

Dividends Account Number – 33
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$0
Apr 20	Cash		$6,500		$6,500

Service Revenue Account Number - 41
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
						$8,200
Apr 21	Cash			$5,700		$13,900

Salaries Expense Account Number – 51
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$5,600
Apr 28	Cash		$1,700		$7,300

Rent Expense Account Number - 52
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$800
Apr 27	Cash		$600		$1,400