Journalizing transactions, posting to T-accounts, and preparing a trial balance Problem 2-62 continues with the consulting business of Carl Draper, begun in Problem 1-48. Here you will account for Draper Consulting”s transactions as it is actually done in practice.
P2-62 Draper Consulting completed the following transactions during the first half of December, 2012:
|
Dec 2 |
Received $18,000 cash and gave capital to Draper. |
|
2 |
Paid monthly office rent, $550. |
|
3 |
Paid cash for a Dell computer, $1,800. This equipment is expected to remain in service for five years. |
|
4 |
Purchased office furniture on account, $4,200. The furniture should last for five years. |
|
5 |
Purchased supplies on account, $900. |
|
9 |
Performed consulting service for a client on account, $1,500. |
|
12 |
Paid utility expenses, $250. |
|
18 |
Performed service for a client and received cash of $1,100. |
Requirements
1. Open T-accounts: Cash; Accounts receivable; Supplies; Equipment; Furniture; Accounts payable; Draper, capital; Draper, drawing; Service revenue; Rent expense; and Utilities expense.
2. Journalize the transactions. Explanations are not required.
3. Post to the T-accounts. Key all items by date, and denote an account balance as Bal. Formal posting references are not required.
4. Prepare a trial balance at December 18. In the Continuing Problem of Chapter 3, we will add transactions for the remainder of December and prepare a trial balance at December 31.