Question

Journalize transactions from T accounts and prepare a trial balance. (LO 3, 5), AP

E3-12B The following T accounts summarize the ledger of Max’s Landscaping Company, Inc. at the end of the first month of operations.

Cash					Unearned Service Revenue
Apr. 1	25,000	Apr. 15	800			Apr. 30	1,900
12	700	25	3,500
29	800
30	1,900

Accounts Receivable					Common Stock
7	3,400	Apr. 29	800			Apr.   1	25,000

Supplies					Service Revenue
4	5,200					Apr.   7	3,400
						12	700

Accounts Payable					Salaries and Wages Expense
25	3,500	Apr.   4	5,200		Apr. 15        800

Instructions

(a) Prepare, in the order they occurred, the journal entries (including explanations) that resulted in the amounts posted to the accounts.

(b) Prepare a trial balance at April 30, 2014. (Hint: Compute ending balances of T accounts first.)

Answer 1

Solution:

Part 1 – Journal Entries

Date	General Journal	Debit	Credit
Apr.1	Cash	$25,000
	Common Stock		$25,000
Apr.4	Supplies	$5,200
	Accounts Payable		$5,200
Apr.7	Accounts Receivable	$3,400
	Service Revenue		$3,400
Apr.12	Cash	$700
	Service Revenue		$700
Apr.15	Salaries and Wages Expense	$800
	Cash		$800
Apr.25	Accounts Payable	$3,500
	Cash		$3,500
Apr.29	Cash	$800
	Accounts Receivable		$800
Apr.30	Cash	$1,900
	Unearned Service Revenue		$1,900

Part 2 – Trial Balance at April 30, 2014

TRIAL BALANCE
April.30, 2014
	Account Title	Debit	Credit
1	Cash (25000+700-800-3500+800+1900)	$24,100
2	Supplies	$5,200
3	Accounts Receivable (3400 - 800)	$2,600
4	Accounts Payable (5200 - 3500)		$1,700
5	Unearned Service Revenue		$1,900
6	Common Stock		$25,000
7	Service Revenue (3400 + 700)		$4,100
8	Salaries and Wages Expense	$800
	Totals	$32,700	$32,700

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