Question

Table 2-3

On February 1, 2019 Kate Dodson began operating a clinic counselling youth called Kate Dodson Counselling Services. Her February transactions are listed below:
	1	Kate invested $20,000 cash, Office Furniture and an Office Building with a Fair Market Value
		of $5,000 and $90,000 respectively.
	3	Provided counseling services to clients on account, $1,000.
	6	Purchased office supplies on credit, $400.
	7	Received $2,200 cash for counselling services.
	10	Kate signed a contract with the province to provide counseling services to local schools for $3,000 per month beginning in March.
	15	Paid salary to assistant $950.
	16	Received the February telephone bill, $100 due on March 16.
	21	Received $800 from clients for payment on account.
	22	Paid $300 for the office supplies purchased on February 6.
	28	Paid salary to assistant $950.
	28	Paid the February utility bill, $380

2)

Record the February transactions from table 2-3 in the general journal.

3) Post the journal entries from question 2 to T-accounts and calculate the balance of each account.

4) Prepare a trial balance from the t-accounts in question 3 dated February 28, 2019.

Answer 1

Recording the February transactions into General Journal:-

Kate Dodson Counselling Services

General Journal

For the Month of February,2019

Date	Accounts Title and Explanation	Debit	Credit
February 1	Cash	$20,000
	Office Furniture	$5,000
	Office Building	$90,000
	Kate Dodson, Capital		$115,000
	(To record introduce Capital in business)
February 3	Accounts Receivable	$1,000
	Counselling Revenue		$1,000
	(To record Revenue on Accounts)
February 6	Office Supplies	$400
	Accounts Payable		$400
	(To record the Purchase of Supplies)
February 7	Cash	$2,200
	Counselling Revenue		$2,200
	(To record the receipt of Revenue in cash)
February 10	No Entry required
	No Entry required
February 15	Salaries Expense	$950
	Cash		$950
	(To record the payment of Salary)
February 16	Telephone Bill Expense	$100
	Telephone Bill Payable		$100
	(To record the Telephone bill due in march)
February 21	Cash	$800
	Accounts Receivable		$800
	(To record the receipt of cash from client)
February 22	Accounts Payable	$300
	Cash		$300
	(To record the payment of Accounts Payable)
February 28	Salaries Expense	$950
	Cash		$950
	(To record the payment of Salary)
February 28	Utilities Expense	$380
	Cash		$380
	(To record the payment of utility bill)

Posting the Transactions into Appropriate Accounts:-

Cash

Date	Debit	Credit	Balance
February 1	$20,000		$20,000
February 7	2,200		$22,200
February 15		$950	$21,250
February 21	800		$22,050
February 22		300	$21,750
February 28		950	$20,800
February 28		380	$20,420

Accounts Receivable

Date	Debit	Credit	Balance
February 3	$1,000		$1,000
February 21		$800	$200

Office Supplies

Date	Debit	Credit	Balance
February 6	$400		$400

Office Furniture

Date	Debit	Credit	Balance
February 1	$5,000		$5,000

Office Building

Date	Debit	Credit	Balance
February 1	$90,000		$90,000

Accounts Payable

Date	Debit	Credit	Balance
February 6		$400	$400
February 22	$300		$100

Telephone Bill Payable

Date	Debit	Credit	Balance
February 16		$100	$100

Kate Dodson, Capital

Date	Debit	Credit	Balance
February 1		$115,000	$115,000

Counselling Revenue

Date	Debit	Credit	Balance
February 3		$1,000	$1,000
February 7		2,200	$3,200

Telephone Bill Expense

Date	Debit	Credit	Balance
February 16	$100		$100

Salaries Expense

Date	Debit	Credit	Balance
February 15	$950		$950
February 28	$950		$1,900

Utilities Expense

Date	Debit	Credit	Balance
February 28	$380		$380

Preparing Trial Balance:-

Kate Dodson Counselling Services

Trial Balance

February 28,2019

Accounts	Debit	Credit
Cash	$20,420
Accounts Receivable	200
Office Supplies	400
Office Furniture	5,000
Office Building	90,000
Accounts Payable		$100
Telephone Bill Payable		100
Kate Dodson, Capital		115,000
Counselling Revenue		3,200
Telephone Bill Expense	100
Salaries Expense	1,900
Utilities Expense	380
Totals	$118,400	$118,400