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 17,000

Office Supplies 1,200

Accounts Receivable 10,500

Land 29,000

Furniture 0

Automobile 0

Accounts Payable 3,800

Unearned Revenue 0

Common Stock 46,200

Dividends 0

Rent Expense 1,000

Salaries Expense 2,500

Service Revenue 11,200

Total Balance \( 61,200 61,200

During April, the business completed the following transactions:

Apr. 4 Collected \)6,000 cash from a client on account.

8 Performed tax services for a client on account, \(5,500.

13 Paid \)3,300 on account.

14 Purchased furniture on account, \(4,000.

15 Menning contributed his personal automobile to the business in exchange for common stock. The automobile had a market value of \)11,500.

18 Purchased office supplies on account, \(1,600.

19 Received \)2,750 for tax services performed on April 8.

20 Paid cash dividends of \(7,500.

21 Received \)4,900 cash for consulting work completed.

24 Received \(2,500 cash for accounting services to be completed next month.

27 Paid office rent, \)900.

28 Paid employee salary, $1,200.

Requirements 2. Open the four-column ledger accounts listed in the trial balance, together with their balances as of March 31. Use the following account numbers: Cash, 11; Accounts Receivable, 12; Office Supplies, 13; Land, 14; Furniture, 15; Automobile, 16; Accounts Payable, 21; Unearned Revenue, 22; Common Stock, 31; Dividends, 33; Service Revenue, 41; Salaries Expense, 51; and Rent Expense, 52.

Short answer

The common stock shows ownership of the company and required four-column accounts are opened in step 2.

Step-by-step solution

Definition of Common Stock

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

Opening Four-Column Accounts

Cash Account Number – 11
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$17,000

Accounts Receivables Account Number - 12
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$10,500

Office Supplies Account Number - 13
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$1,200

Land Account Number - 14
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$29,000

Furniture Account Number - 15
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$0

Automobile Account Number – 16
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$0

Accounts Payable Account Number - 21
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
						$3,800

Unearned Revenue Account Number - 22
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
						$0

Common Stock Account Number – 31
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
						$46,200

Dividends Account Number – 33
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$0

Service Revenue Account Number - 41
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
						$11,200

Salaries Expense Account Number – 51
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$2,500

Rent Expense Account Number - 52
					Balance
Date	Item	PR	Debit	Credit	Debit	Credit
					$1,000