Question

Explain what a transaction is; analyze the impact of business transactions on accounts; record [journalize and post] transactions in the books; construct and use a trial balance) You are a Certified Public Accountant “Student’s name, Certified Public Accountant”, and operate as a professional corporation (P.C.). Your business completed these transactions during the first part of August 2016:

Aug. 1 The P.C. received $20,000 cash from you, and issued you common stock.

2 Paid monthly office rent, $800

3 Purchased a computer on account for $2,500, with the computer expected to remain in service for five years.

4 Purchased office furniture for cash, $5,000, with the furniture projected to last for five years.

5 Purchased supplies on account, $800.

9 Performed tax service for a client on account, $1,500.

15 Received and paid utility expenses, $350.

20 Preformed consulting services and received cash for the full amount of $1,800.

LO USING EXCEL:

1. Journalize the transaction. Explanations are not required.

2. Post to the T-accounts. Key all items by date and determine the ending balance in each account. Denote an account balance on August 20, 2016, as Bal.

3. Prepare a trial balance at August 20, 2016.

Journal

Date

ACCOUNT TITLES AND EXPLANATION

DEBIT

CREDIT

Aug 1

-

2

-

3

-

4

-

5

-

9

-

12

-

18

-

Req. 2
Cash					Accounts Receivable
Aug. 1
					Bal.
Bal.	-
Supplies					Equipment
Bal.					Bal.
Furniture					Accounts Payable
Bal.							Bal.	-
Common Stock					Service Revenue
		Bal.	-				Bal.	-
Rent Expense					Utilities Expense
Bal.	-				Bal.	-
Req. 3
Student's Name, Certified Public Accountant, P.C.
Trial Balance
August 20, 2016
ACCOUNT							DEBIT	CREDIT
Cash
Accounts receivable
Supplies
Equipment
Furniture
Accounts payable
Common stock
Dividends
Service revenue
Rent expense
Utilities expense
Salary expense
Total							$ -	$ -