Question

Task:

1. Create journal entries for the following transactions;
2. Draw up a T-account for each account affected by transactions;
3. Calculate normal balances for all T-accounts.
4. Prepare an unadjusted trial balance.

Transactions:

April, 1: Student Co. received fees earned from customers, $ 20,000;

April, 2: Purchased office equipment on credit, $45,000;

April, 6: The owner invests $170,000 cash into business;

April, 8: Purchased office supplies on account, $2,500;

April, 9: Purchased land for a future building site, $80,000;

April, 13: Paid office rent for one month, $5,500;

April, 16: Received cash $4,100 from a customer for interest earned;

April, 18: Paid utilities expense for the month of February, $700;

April, 19: The owner withdraws $3,000 from the business;

April, 20: Purchased inventory, $5,000;

April, 21: Paid creditors on account, $5,500;

April, 24: Paid tax expense, $500;

April, 25: Services provided on account, $23,000;

April, 28: Paid creditors on account, $20,000;

April, 29: Paid salaries bill, $23,900.

April 30, Received $10,000 on account from customers.

Journal
Date		Description	Post. Ref	Debit	Credit

Ledger

Add more T-accounts if needed.

(Draw a T accounts)   

Student Co. Unadjusted Trial Balance April 30, 2020
	Debit Balances	Credit Balances

Answer 1

1. JOURNAL

DATE	DESCRIPTION	DEBIT	CREDIT
APRIL 1	CASH	20,000
	SERVICE FEE		20,000
APRIL 2	OFFICE EQUIPMENT	45,000
	ACCOUNTS PAYABLE		45,000
APRIL 6	CASH	170,000
	OWNERS EQUITY		170,000
APRIL 8	OFFICE SUPPLIES	2,500
	ACCOUNTS PAYABLE		2,500
APRIL 9	LAND	80,000
	CASH		80,000
APRIL 13	RENT	5,500
	CASH		5,500
APRIL 16	CASH	4,100
	INTEREST EARNED		4,100
APRIL 18	UTILITY EXPENSES	700
	CASH		700
APRIL 19	WITHDRAWALS	3,000
	CASH		3,000
APRIL 20	INVENTORY	5,000
	CASH		5,000
APRIL 21	ACCOUNTS PAYABLE	5,500
	CASH		5,500
APRIL 24	TAX EXPENSES	500
	CASH		500
APRIL 25	ACCOUNTS RECEIVABLE	23,000
	SERVICE FEE		23,000
APRIL 28	ACCOUNTS PAYABLE	20,000
	CASH		20,000
APRIL 29	SALARIES	23,900
	CASH		23,900
APRIL 30	CASH	10,000
	ACCOUNTS RECEIVABLE		10,000

2.LEDGER

CASH

SERVICE FEE	20,000	LAND	80,000
OWNERS EQUITY	170,000	RENT	5,500
INTEREST EARNED	4,100	EXPENSES	700
ACCOUNTS RECEIVABLE	10,000	WITHDRAWALS	3,000
		INVENTORY	5,000
		ACCOUNTS PAYABLE	5,500
		TAX EXPENSES	500
		ACCOUNTS PAYABLE	20,000
		SALARIES	23,900
		BALANCE	60,000
TOTAL	204,100	TOTAL	204,100

SERVICE FEE

		CASH	20,000
BALANCE	43,000	ACCOUNTS RECEIVABLE	23,000
TOTAL	43,000	TOTAL	43,000

OFFICE EQUIPMENT

ACCOUNTS PAYABLE	45,000	BALANCE	45,000
TOTAL	45,000	TOTAL	45,000

ACCOUNTS PAYABLE

CASH	5,500	OFFICE EQUIPMENT	45,000
CASH	20,000	OFFICE SUPPLIES	2,500
BALANCE	22,000
TOTAL	47,500	TOTAL	47,500

OWNERS EQUITY

BALANCE	170,000	CASH	170,000
TOTAL	170,000	TOTAL	170,000

OFFICE SUPPLIES

ACCOUNTS PAYABLE	2,500	BALANCE	2,500
TOTAL	2,500	TOTAL	2,500

LAND

CASH	80,000	BALANCE	80,000
TOTAL	80,000	TOTAL	80,000

RENT

CASH	5,500	BALANCE	5,500
TOTAL	5,500	TOTAL	5,500

INTEREST EARNED

BALANCE	4,100	CASH	4,100
TOTAL	4,100	TOTAL	4,100

UTILITY EXPENSES

CASH	700	BALANCE	700
TOTAL	700	TOTAL	700

WITHDRAWALS

CASH	3,000	BALANCE	3,000
TOTAL	3,000	TOTAL	3,000

INVENTORY

CASH	5,000	BALANCE	5,000
TOTAL	5,000	TOTAL	5,000

TAX EXPENSES

CASH	500	BALANCE	500
TOTAL	500	TOTAL	500

ACCOUNTS RECEIVABLES

SERVICE FEE	23,000	CASH	10,000
		BALANCE	13,000
TOTAL	23,000	TOTAL	23,000

SALARIES

CASH	23,900	BALANCE	23,900
TOTAL	23,900	TOTAL	23,900

3.UNADJUSTED TRIAL BALANCE

ACCOUNT	DEBIT	CREDIT
CASH	60,000
SERVICE FEE		43,000
OFFICE EQUIPMENT	45,000
ACCOUNTS PAYABLE		22,000
OWNERS EQUITY		170,000
OFFICE SUPPLIES	2,500
LAND	80,000
RENT	5,500
INTEREST EARNED		4,100
UTILITY EXPENSES	700
WITHDRAWALS	3,000
INVENTORY	5,000
TAX EXPENSES	500
ACCOUNTS RECEIVABLES	13,000
SALARIES	23,900
TOTAL	239,100	239,100