Question

Problem 2-2A Julia Dumars is a licensed CPA. During the first month of operations of her business, Julia Dumars, Inc., the following events and transactions occurred. May 1 Stockholders invested $22,700 cash in exchange for common stock. 2 Hired a secretary-receptionist at a salary of $1,200 per month. 3 Purchased $2,560 of supplies on account from Vincent Supply Company. 7 Paid office rent of $760 cash for the month. 11 Completed a tax assignment and billed client $2,400 for services performed. 12 Received $3,120 advance on a management consulting engagement. 17 Received cash of $1,310 for services performed for Orville Co. 31 Paid secretary-receptionist $1,200 salary for the month. 31 Paid 48% of balance due Vincent Supply Company. Julia uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 311 Common Stock, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.

1. Journalize the transactions. 2. Post to the ledger accounts. 3. Prepare a trial balance on May 31, 2015. JULIA DUMARS, INC. Trial Balance May 31, 2015

Answer 1

Solution:

Date	Particulars	Debit	Credit
May-01	Cash	22,700
	Common stock		22,700
May-02	Accounts Payable	1,200
	Salaries & Wages Expense		1,200
May-03	Supplies	2,560
	Accounts Payable		2,560
May-07	Rent Expense	760
	Cash		760
May-11	Accounts Receivable	2,400
	Service Revenue		2,400
May-12	Cash	3,120
	Unearned Service Revenue		3,120
May-17	Cash	1,310
	Service Revenue		1,310
May-31	Salaries & Wages	1,200
	Cash		1,200

TRIAL BALANCE
Particulars	Debit	Credit
Cash	23941.2
Common stock		22,700
Supplies	2,560
Accounts Payable		1331.2
Rent Expense	760
Accounts Receivable	2,400
Service Revenue		3,710
Unearned Service Revenue		3,120
Salaries & Wages	1,200
TOTAL	30861.2	30861.2