Journalizing transactions, posting to T-accounts, and preparing a trial balance

Doris Stewart started her practice as a design consultant on September 1, 2012. During the first month of operations, the business completed the following transactions:

Sep. 1 Received $42,000 cash and issued common stock.

4. Purchased supplies, $700, and furniture, $1,900, on account.

6. Performed services for a law firm and received $1,400 cash.

7. Paid $24,000 cash to acquire land for a future office site.

10. Performed service for a hotel and received its promise to pay the $1,000 within one week.

14. Paid for the furniture purchased September 4 on account.

15. Paid secretary’s bi-monthly salary, $490.

17. Received cash on account, $400.

20. Prepared a design for a school on account, $700.

28. Received $2,100 cash for consulting with Plummer & Gorden.

30. Paid secretary’s bi-monthly salary, $490.

30. Paid rent expense, $650.

30. Paid cash dividends of $3,000.


1. Open the following T-accounts: Cash, Accounts receivable, Supplies, Furniture, Land, Accounts payable, Common stock, Dividends, Service revenue, Salary expense, and Rent expense.

2. Record each transaction in the journal, using the account titles given. Key each transaction by date. Explanations are not required.

3. Post the transactions to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal, as shown in the chapter.

4. Prepare the trial balance of Doris Stewart, Designer, P.C., at September 30, 2012.