Question

A: Open T-accounts for each of the accounts listed in the trial balance, and enter the opening balances for 2017.

B: Prepare journal entries to record each of the January transactions.

Tom Zopf owns and manages a computer repair service, which had the following trial balance on December 31, 2016 (the end of its fiscal year).

TABLETTE REPAIR SERVICE, INC. Trial Balance December 31, 2016
		Debit		Credit
Cash		$ 9,000
Accounts Receivable		15,100
Supplies		12,700
Prepaid Rent		2,800
Equipment		19,300
Accounts Payable				$16,500
Common Stock				31,000
Retained Earnings				11,400
		$58,900		$58,900

Summarized transactions for January 2017 were as follows.

1.		Advertising costs, paid in cash, $1,120.
2.		Additional supplies acquired on account $4,150.
3.		Miscellaneous expenses, paid in cash, $2,020.
4.		Cash collected from customers in payment of accounts receivable $12,340.
5.		Cash paid to creditors for accounts payable due $12,840.
6.		Repair services performed during January: for cash $6,850; on account $8,540.
7.		Wages for January, paid in cash, $2,410.
8.		Dividends during January were $2,550.

Answer 1

• As required y the question, the T accounts of given accounts are opened. Also, the given journal entries are posted to those Opened T Accounts.
• Journal Entries

No	Account Titles	Dr	Cr
1	Advertising expenses	1120
	Cash		1120
2	Supplies	4150
	Accounts payable		4150
3	Miscellaneous expenses	2020
	Cash		2020
4	Cash	12340
	Accounts receivables		12340
5	Accounts payable	12840
	Cash		12840
6	Cash	6850
	Accounts receivables	8540
	Service Revenue		15390
7	Wages/Salaries expense	2410
	Cash		2410
8	Dividends	2550
	Cash		2550

• T Accounts opened

Cash
Op. Bal	9000	1	1120
4	12340	3	2020
6	6850	5	12840
		7	2410
		8	2550
		Bal	7250
TOTAL	28190	TOTAL	28190
Accounts receivables
Op bal	15100	4	12340
6	8540	Bal	11300
Total	23640	Total	23640
Supplies
Op Bal	12700	BAL	16850
2	4150
Total	16850	Total	16850
Prepaid Rent
Op bal	2800	Bal	2800
Total	2800	Total	2800
Equipment
Op Bal	19300	Bal	19300
Total	19300	Total	19300
Accounts payable
5	12840	Op Bal	16500
Bal	7810	2	4150
Total	20650	Total	20650
Common Stock
Bal	31000	Op Bal	31000
Total	31000	Total	31000
Retained earnings
Bal	11400	Op. Bal	11400
Total	11400	Total	11400