Selected transactions from the journal of Roberta Mendez, investment broker, are presented below.
|
Date |
Account Titles and Explanation |
Ref. |
Debit |
Credit |
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|
Aug.1 |
Cash |
5,000 |
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|
Common Stock |
5,000 |
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|
(Investment of cash for stock) |
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|
10 |
Cash |
2,700 |
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|
Service Revenue |
2,700 |
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|
(Received cash for services provided) |
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|
12 |
Equipment |
5,000 |
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|
Cash |
1,000 |
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|
Notes Payable |
4,000 |
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|
(Purchased office equipment for cash and notes payable) |
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|
25 |
Accounts Receivable |
1,600 |
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|
Service Revenue |
1,600 |
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|
(Billed clients for services provided) |
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|
31 |
Cash |
850 |
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|
Accounts Receivable |
850 |
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|
(Receipt of cash on account) |
Instructions
(a) Post the transactions to T-accounts.
(b) Prepare a trial balance at August 31,2014.