Question

4. Now that you have both a DR & a CR T account created, copy and paste the T Account to create the following accounts all with 0 beginning balances: a. Cash b. Accounts Receivable c. Office Supplies d. Prepaid Rent e. Land f. Equipment g. Accumulated Depreciation- Equipment h. Accounts Payable i. Salaries & Wages Payable j. Unearned Revenue k. Common Stock l. Dividends m. Service Revenue n. Rent Expense o. Supplies Expense p. Salaries & Wages Expense q. Depreciation Expense- Equipment 5. Record the following transactions in the T Accounts. You are not required to complete the journal, but if it helps you to do that prior to posting them to the T Accounts, feel free to do that on paper. **Hint** Type each DR first, and then use a formula to enter the CR transaction so that if you have to make changes later you only have to make the change to the DR. a. Mr. Reed opened a print service company, Print It, on Jan 1 and gave the company $15000 in cash and a piece of land valued at $65000 in exchange for common stock. b. On Jan 1 Print It paid $7500 for the first 6 months of rent. c. Print It paid cash for $1000 of office supplies on Jan 15 d. Print It signed a 10,000 notes payable on Feb 1 to purchase the printing equipment necessary for operation. The equipment is expected to last for 10 years and have a salvage value of $1000. e. Feb 5 Print It completed a $700 print service and billed the customer for the job. f. Feb 15 Print it purchased another $120 of office supplies on account. g. Feb 25 Print it received $1500 from a customer for 3 months’ worth of printing services to begin on Mar 1. h. On March 5 Print It paid its only employee $2500 for work completed in February. i. On March 31 Print It adjusted for completing one month of services from the customer transaction that took place on Feb 25. j. On March 31 Print It did a count of office supplies and found that there were $475 worth of supplies still available. k. March 31, Print It adjusted for the first quarter’s rent. l. Mar 31, Print It adjusted for the first quarter of depreciation on equipment m. As of March 31, Print It owed its employee $2500 in wages, but the wages won’t be paid out until April 5. n. No dividends were paid out for the quarter. 6. Create a Trial Balance a. Create a new spreadsheet & name it “trial balance” b. Merge Rows 1-3 from Column A to D so that you can have three title rows. c. In Cell A5 type : Account Title d. In Cell C5 type: DR e. In cell D5 type: CR f. Use formulas to transfer over all of your account names and balances i. To pull info from a separate sheet start your formula with a = and then click on the T-Account Tab where you want to pull the info and select the title cell of the first title you want to list. (Remember, your trial balance will be ordered in liquidity)

Answer 1

	Print Service Company
	Journal Entries
	March 31st
Date	Particular	Amount (DR)	Amount(Cr)
01-Jan	Cash	$         15,000.00
	Land	$         65,000.00
	To Common Stock		$               80,000.00
	(Being amount and land invested in business)
01-Jan	Prepaid Rent	$            7,500.00
	To Cash		$                 7,500.00
	(Being amount paid or 6 months rent)
15-Jan	Office Supplies	$            1,000.00
	To cash		$                 1,000.00
	(Being amount paid for office supplies)
01-Feb	Office Equipment	$         10,000.00
	To Note Payable		$               10,000.00
	(Being amount of Equipment Purchased by issuing Note Payable)
05-Feb	Accounts receivable	$               700.00
	To Service Revenue		$                     700.00
	(Being amount billed to customer for service rendered)
15-Feb	Office Supplies	$               120.00
	To Accounts Payable		$                     120.00
	(Being amount of Supplies Purchased on account)
25-Feb	Cash	$            1,500.00
	To Unearned Service Revenue		$                 1,500.00
	(Being amount of Cash received in advance for service started on March 1st)
05-Mar	Wages	$            2,500.00
	To cash		$                 2,500.00
	(Being amount paid to employees)
31-Mar	Unearned Service Revenue	$            1,500.00
	To Service Revenue		$                 1,500.00
	(Being amount of Service completed against which advance received on Feb 25th)
31-Mar	Office Supplies Expenses=($1000+$120-$475)	$               645.00
	To Office Supplies		$                     645.00
	(Being amount of Supplies Expenses)
31-Mar	Rent =($7500*3/6)	$            3,750.00
	To Prepaid Rent		$                 3,750.00
	(Being amount of Rent for 3 month)
31-Mar	Wages	$            2,500.00
	To Wages Payable		$                 2,500.00
	(Being amount of Wages Payable)
	T-Accounts
	Prepaid Rent			Balance
Date	Item	Dr	Cr	Dr
01-Jan	Cash	$            7,500.00		7500
31-Mar	Rent		$                 3,750.00	$            3,750.00
	Rent
Date	Item	Dr	Cr	Dr
31-Mar	Prepaid Rent	$            3,750.00		3750
	Office Supplies
Date	Item	Dr	Cr	Dr
15-Jan	Cash	$            1,000.00
15-Feb	Accounts Payable	$               120.00
31-Mar	Office Supplies Expenses		$                     645.00	$                         -
	Office Supplies Expenses			Balance
Date	Item	Dr	Cr	Dr
31-Mar	Office Supplies	$               645.00		645
	Equipment			Balance
Date	Item	Dr	Cr	Dr
01-Feb	Note Payable	$         10,000.00		10000
	Note Payable			Balance
Date	Item	Dr	Cr	Dr
01-Feb	Equipment		$               10,000.00
	Common Stock
Date	Item	Dr	Cr	Dr
01-Jan	Cash		$               15,000.00
01-Jan	Land		$               65,000.00
	Land
Date	Item	Dr	Cr	Dr
01-Jan	Common Stock	$         65,000.00		65000
	Accounts Receivable
Date	Item	Dr	Cr	Dr
05-Feb	Service Revenue	$               700.00		700
	Unearned Service Revenue
Date	Item	Dr	Cr	Dr
25-Feb	Cash	$            1,500.00
31-Mar	Service Revenue		$                 1,500.00
	Service Revenue
Date	Item	Dr	Cr	Dr
05-Feb	Accounts Receivable		$                     700.00
31-Mar	Unearned Service revenue		$                 1,500.00
	Wages
Date	Item	Dr	Cr	Dr
05-Mar	Cash	$            2,500.00		2500
31-Mar	Wages Payable	$            2,500.00		5000
	Wages Payable
Date	Item	Dr	Cr	Dr
31-Mar	Wages		$                 2,500.00
	Depreciation			Balance
Date	Item	Dr	Cr	Dr
31-Mar	Accumulated Depreciation	$               225.00		$               225.00
	Accumulated Depreciation			Balance
Date	Item	Dr	Cr	Dr
31-Mar			$                     225.00
	Accounts Payable			Balance
Date	Item	Dr	Cr	Dr
15-Feb	Office Supplies		$                     120.00
	Cash
Date	Item	Dr	Cr	Dr
01-Jan	Common Stock	$         15,000.00		$         15,000.00
01-Jan	Prepaid Rent		$                 7,500.00	$            7,500.00
15-Jan	Office Supplies		$                 1,000.00	$            6,500.00
25-Feb	Unearned Service Revenue	$            1,500.00		$            8,000.00
05-Feb	Wages		$                 2,500.00	$            5,500.00
	Trial Balance
	Adjusted Trial Balance March 31st
	Accounts Title	Debit	Credit
	Cash	$            5,500.00
	Accounts Receivable	$               700.00
	Prepaid Rent	$            3,750.00
	Office Supplies	$               475.00
	Land	$         65,000.00
	Equipment	$         10,000.00
	Accumulated Depreciation-Equipment		$                     225.00
	Accounts Payable		$                     120.00
	Wages Payable		$                 2,500.00
	Note Payable		$               10,000.00
	Common Stock		$               80,000.00
	Service Revenue		$                 2,200.00
	Wages	$            5,000.00
	Supplies Expenses	$               645.00
	Depreciation Expense	$               225.00
	Rent Expenses	$            3,750.00
	Total	$         95,045.00	95045