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.
So here is what I came up with thus far. Any guidance would be great and most appreciated.
For Requirement 1:
Cash Accounts Recievable
5,900.00 6700 5,900.00
14100
19300
Office Furniture
5,200.00
Office Supplies Parker, Capital
900.00 19300
Accounts Payable Service Revenue
900 5900
1500 14100
1700
Parker, drawings Salary Expense
6,700.00 1,700.00
Rent Expense
1,500.00
For Requirement 2:
A. Journal Entry Cash (A ) 14,100
Parker, Capital (Q ) 14,100
A. Journal Entry Office furniture (A ) 5,200
Accounts payable (L ) 5,200
A. Journal Entry Parker, Capital (Q ) 19,300
Cash (A-) 19,300
B. Journal Entry Rent Expense (E ) 1,500
Cash (A-) 1,500
C. Journal Entry Office Supplies (A ) 900
Accounts payable (L ) 900
D. Journal Entry Salary Expense (E ) 1,700
Cash (A-) 1,700
E. Journal Entry Accounts Payable (L-) 700
Cash (A-) 700
F. Journal Entry Accounts receivable (A ) 5,900
Service revenue (R ) 5,900
G. Journal Entry Parker, Drawing (D ) 6,700
Cash (A-) 6,700
For Requirement 3:
Teresa Parker,CPA
Trial Balance
December 31, 2012
Account Title
Balance
D C
Cash 22,800
Accounts receivable 5,900
Supplies 900
Furniture 5,200
Accounts payable 5,400
Parker, Capital 33,400
Parker, drawing 6,700
Service Revenue 5,900
Salary Expense 1,700
Rent Expense 1,500
Total 44,700 44,700