Question

Preparing and posting General Journal entries; preparing a trial balance LO3,4,5,6,7 WiCom Servicing completed these transactions during November 2014, its first month of operations: Nov. 1 2 4 8 12 13 19 22 24 28 29 30 30 Tait Unger, the owner, invested $62,000 cash and office equipment that had a fair value of $19,000 in the business. Prepaid $21,000 cash for three months’ rent for an office. Made credit purchases of used office equipment for $9,000 and office supplies for $1,650. Completed work for a client and immediately received $5,200 cash. Completed a $4,800 project for a client, who will pay within 30 days. Paid the account payable created on November 4. Paid $3,750 cash as the annual premium on an insurance policy. Received $2,000 as partial payment for the work completed on November 12. Completed work for another client for $3,600 on credit. Unger withdrew $5,300 from the business for personal use. Purchased $1,700 of additional office supplies on credit. Paid $19,000 in wages. Paid $1,650 for the month’s utility bill
I need to do a trial balance with 5his please help Edition, 14th Edition. B&E, 01/2 file.

Answer 1

Solution:

Part 1 – Journal Entries

Date	General Journal	Debit	Credit
Nov.1	Cash	$62,000
	Office Equipment	$19,000
	Owner's Capital Account		$81,000
Nov.2	Prepaid Rent	$21,000
	Cash		$21,000
Nov.4	Office Equipment	$9,000
	Office Supplies	$1,650
	Accounts Payable		$10,650
Nov. 8	Cash	$5,200
	Service Revenue		$5,200
Nov.12	Accounts Receivable	$4,800
	Service Revenue		$4,800
Nov.13	Accounts Payable	$10,650
	Cash		$10,650
Nov.19	Prepaid Insurance	$3,750
	Cash		$3,750
Nov.22	Cash	$2,000
	Accounts Receivable		$2,000
Nov.24	Accounts Receivable	$3,600
	Service Revenue		$3,600
Nov. 28	Owner's Drawing Account	$5,300
	Cash		$5,300
Nov.29	Office Supplies	$1,700
	Accounts Payable		$1,700
Nov.30	Wages Expense	$19,000
	Cash		$19,000
Nov.30	Utility Expenses	$1,650
	Cash		$1,650

Trial Balance

Trial Balance
	Debit	Credit
Cash (62,000-21000+5200-10650-3750+2000-5300-19000-1650)	$7,850
Accounts Receivable (4800-2000+3600)	$6,400
Office Supplies (1650 + 1700)	$3,350
Office Equipment (19000+9000)	$28,000
Prepaid Rent	$21,000
Prepaid Insurance	$3,750
Accounts Payable (10650-10650+1700)		$1,700
Owner's Capital		$81,000
Owner's Drawing Account	$5,300
Service Revenue (5200+4800+3600)		$13,600
Wages Expense	$19,000
Utility Expense	$1,650
	$96,300	$96,300

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