Question

Posting Journal Entries and preparing Trial Balance

Dyna Corp., a legal firm, completed the following transactions during the month of January, its first month of operations.

1. Jan. 1 Issued 4,000 shares of common stock for $20,000 cash.

2. Jan. 3 Purchased $24,000 of office equipment by paying $2,000 cash and by signing a one-year, 10% interest-bearing note payable for the remaining balance.

3. Jan. 3 Purchased $1,200 supplies on account. Hint: Debit supplies.

4. Jan. 4 Performed $1,600 of legal services on account.

5. Jan. 6 Received a $600 cash deposit from a new client for legal work to commence next month.

6. Jan. 10 Paid $2,000 cash for a 12-month insurance policy.

7. Jan. 13 Paid cash to settle the account for supplies purchased on January 3.

8. Jan. 20 Performed legal services for $2,000 cash.

9. Jan. 30 Collected $800 cash from customer on account for legal services performed on January 4.

10. Jan. 31 Paid $1,200 cash in salaries for the month of January.

11. Jan. 31 Paid $400 cash dividends to shareholders.

12. Jan. 31 Paid $2,000 cash for January rent.

Using the information above, complete the following requirements.

a. Post the journal entries 1 through 12 to T-accounts (serving as a ledger), and determine the ending balance in each T-account.

Note: Enter amounts in the order that they are presented above (1 through 12), using the first answer field on the appropriate side of the T-account. Not all answer fields will be used. Do not enter dates.

Answer 1