Hello,
Can someone please help me with the solution to this problem? I am enrolled in this course and just not understanding what I am to do. I know for a portion of the problem I use T accounts, but not sure what goes where. Also, I am not sure about the journal postings or the trial balance sheet. Any help you can provide would be great! I just want to try to understand this information and do well in the course. Thank you.
Problem reads:
Recording transactions, using four-column ledger accounts, and preparing a trial balance
The following transactions occurred during the month for Teresa Parker, CPA:
a. Parker opened an accounting firm by investing $14,100 cash and office furniture valued at $5,200. The business issued $19,300 of capital to Parker.
b. Paid monthly rent of $1,500.
c. Purchased office supplies on account, $900.
d. Paid employee’s salary, $1,700.
e. Paid $700 of the account payable created in transaction
(c).
f. Performed accounting service on account, $5,900.
g. Owner withdrew cash of $6,700.
Requirements
1. Open the following four-column accounts of Teresa Parker, CPA: Cash; Accounts receivable; Office supplies; Office furniture; Accounts payable; Parker, capital; Parker, drawing; Service revenue; Salary expense; Rent expense.
2. Journalize the transactions and then post to the four-column accounts, use the letters to identify the transactions. Keep a running balance in each account.
3. Prepare the trial balance at December 31, 2012.
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