one

Dr. Emebet is a licensed dentist. During the first month of the operation of her business, the
following events and transactions occurred.

April 1 Invested Birr 20,000 cash in her business.

1 Hired a secretary-receptionist at a salary of Birr 700 per week payable monthly.
2 Paid office rent for the month Birr 1,100.
3 Purchased dental supplies on account from Smile Company Birr 4,000.
10 Performed dental services and billed insurance companies Birr 5,100.
11 Received Birr 1,000 cash advance from Heather Greene for an implant.
20 Received Birr 2,100 cash for services performed from James Chang.
30 Paid secretary-receptionist for the month Birr 2,800.
30 Paid Birr 2,400 to Smile Company for accounts payable due.

Dr. Emebet uses the following chart of accounts: No. 101 Cash, No. 112 Accounts
Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service
Revenue, No. 301 Owner’s Capital, No. 400 Service Revenue, No. 726 Salaries and Wages
Expense, and No. 729 Rent Expense.

Instructions
(a) Journalize the transactions.
(b) Post to the ledger accounts.
(c) Prepare a trial balance on April 30, 2014.
 Two
Santa Ana Services was formed on May 1, 2014. The following transactions took place
during the first month. Transactions on May1:
1. Don Humes invested $40,000 cash in the company, as its sole owner.
2. Hired two employees to work in the warehouse. They will each
be paid a salary of $3,050 per month.
3. Signed a 2-year rental agreement on a warehouse; paid $24,000
cash in advance for the first year.
4. Purchased furniture and equipment costing $30,000. A cash
payment of $10,000 was made immediately; the remainder will be
paid in 6 months.
5. Paid $1,800 cash for a one-year insurance policy on the furniture
and equipment.
6. Purchased basic office supplies for $500 cash.
7. Purchased more office supplies for $1,500 on account.
8. Total revenues earned were $20,000—$8,000 cash and $12,000 on
account.
9. Paid $400 to suppliers for accounts payable due.
10.Received $3,000 from customers in payment of accounts
receivable.
11. Received utility bills in the amount of $350, to be paid next month.
12. Paid the monthly salaries of the two employees, totaling $6,100.
Instructions
(a) Prepare journal entries to record each of the events listed.
(b) Post the journal entries to T-accounts.
(c) Prepare a trial balance as of May 31, 2014.
 Three
May 1 Jim Wright invested $20,000 in cash to form Paws and Hoofs Clinic.
2 Made an agreement to provide $6,000 in services over the next year to Quarter
Horse Stables.
3 Paid $600 in advance for two months’ rent of an office.
9 Purchased medical supplies for $400 in cash.
12 Purchased $4,000 of equipment on credit; made a 25 percent down payment.
15 Delivered a calf for a fee of $350 on credit.
18 Made a payment of $500 on the equipment purchased on May 12.
27 Paid a utility bill of $140.
1. Identify the company’s business transactions, and prepare journal entries to record
them.
2. Post the transactions to the following on four column Ledger. Cash; Accounts Receivable;
Medical Supplies; Prepaid Rent; Equipment; Accounts Payable; J. Wright, Capital;
Veterinary Fees Earned; and Utilities Expense.
3. Prepare a trial balance for the month of May.
 Four
Bob Sample opened the Campus Laundromat on September 1, 2014. During the first month
of operations, the following transactions occurred.
Sept. 1 Bob invested $20,000 cash in the business.
2 The company paid $1,000 cash for store rent for September.
3 Purchased washers and dryers for $25,000, paying $10,000 in cash and signing a
$15,000, 6-month, 12% note payable.
4 Paid $1,200 for a one-year accident insurance policy.
10 Received a bill from the Daily News for advertising the opening of the laundromat
$200.
20 Bob withdrew $700 cash for personal use.
30 The company determined that cash receipts for laundry services for the month
were $6,200.
Instructions
(a) Journalize the September transactions. (Use J1 for the journal page number.)
(b) Open ledger accounts and post the September transactions.
(c) Prepare a trial balance at September 30, 2014.
 Five
Iris Beck is a licensed CPA. During the first month of operations of her business, the
following events and transactions occurred.
May 1 Beck invested $20,000 cash in her business.
2 Hired a secretary-receptionist at a salary of $2,000 per month.
3 Purchased $2,500 of supplies on account from Tinio Supply Company.
7 Paid office rent of $900 cash for the month.
11 Completed a tax assignment and billed client $3,200 for services performed.
12 Received $3,500 advance on a management consulting engagement.
17 Received cash of $1,200 for services performed for Misra Co.
31 Paid secretary-receptionist $2,000 salary for the month.
31 Paid 60% of balance due Tinio Supply Company.
Iris uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No.
126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 301
Owner’s Capital, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No.
729 Rent Expense.
Instructions
(a) Journalize the transactions.
(b) Post to the ledger accounts.
(c) Prepare a trial balance on May 31, 2014.
 six
On September 1, 2014, Michael Moe began Moe’s Mowing, Inc., a company
that provides mowing and landscaping services. During the month of
September, the business incurred the following transactions:
a. To begin operations, Michael deposited $10,000 cash in the business’s
bank account. The business received the cash and gave capital to Moe.
b. The business purchased equipment for $3,500 on account.
c. The business purchased office supplies for $800 cash.
d. The business provided $2,600 of services to a customer on account.
e. The business paid $500 cash toward the equipment previously
purchased on account in transaction b.
f. The business received $2,000 in cash for services provided to a new
customer.
g. The business paid $200 cash to repair equipment.
h. The business paid $900 cash in salary expense.
i. The business received $2,100 cash from customers on account.
j. Moe withdrew cash of $1,500.

Requirements
1. Create blank T-accounts for the following accounts: Cash; Accounts
receivable; Supplies; Equipment; Accounts payable; Moe, capital; Moe,
drawing; Service revenue; Salary expense; and Repair expense.
2. Journalize the transactions and show how they are recorded in T-
accounts.
3. Total all of the T-accounts to determine their balances at the end of the
month.
 Seven
The following transactions occurred during the month for Teresa Parker,
CPA:
a. Parker opened an accounting firm by investing $14,100 cash and office
furniture valued at $5,200. The business issued $19,300 of capital to
Parker.
b. Paid monthly rent of $1,500.
c. Purchased office supplies on account, $900.
d. Paid employee’s salary, $1,700.
e. Paid $700 of the account payable created in transaction
f. Performed accounting service on account, $5,900.
g. Owner withdrew cash of $6,700.
Requirements
1. Open the following four-column accounts of Teresa Parker, CPA:
Cash; Accounts receivable; Office supplies; Office furniture; Accounts
payable; Parker, capital; Parker, drawing; Service revenue; Salary
expense; Rent expense.
2. Journalize the transactions and then post to the four-column accounts.
Use the letters to identify the transactions. Keep a running balance in
each account.
3. Prepare the trial balance at December 31, 2012.
 Eight
Principe Technology Solutions completed the following transactions
during August 2012, its first month of operations:
1 Received cash of $48,000 and gave capital to the owner.
2 Purchased supplies of $500 on account.
4 Paid $47,000 cash for a building.
6 Performed service for customers and received cash, $4,400.
9 Paid $200 on accounts payable.
17 Performed service for customers on account, $2,200.
23 Received $1,600 cash from a customer on account.
31 Paid the following expenses: salary, $1,900; rent, $700.
Requirement
1. Record the preceding transactions in the journal of Principe Technology Solutions.
Include an explanation for each entry.
2. Use the following accounts: Cash, Accounts receivable, Supplies, Building, Accounts
payable, Principe, capital, Service revenue, Salary expense, and Rent expense to
Journalize the transactions and then post to the four-column accounts.
3. Prepare the trial balance at August, 2012.
 nine
Vernon Yung practices medicine under the business title Vernon Yung, M.D. During July, the
medical practice completed the following transactions:
Jul 1 Yung deposited $68,000 cash in the business bank account. The business gave capital
to Yung.
5 Paid monthly rent on medical equipment, $560.
9 Paid $16,000 cash to purchase land for an office site.
10 Purchased supplies on account, $1,600.
19 Borrowed $23,000 from the bank for business use. Yung signed a note payable to the
bank in the name of the business.
22 Paid $1,300 on account.
31 Revenues earned during the month included $6,500 cash and $5,800 on account.
31 Paid employees’ salaries $2,500, office rent $1,100, and utilities $400. Make a single
compound entry.
31 Yung withdrew cash of $7,000.
The business uses the following accounts: Cash; Accounts receivable; Supplies; Land; Accounts
payable; Notes payable; Yung, capital; Yung, drawing; Service revenue; Salary expense; Rent
expense; and Utilities expense.
Requirements
1. Journalize each transaction. Explanations are not required.
2. Post the transactions to a four column ledger accounts.
3. Prepare the trial balance of Vernon Yung, M.D. at July 31, 2012.
 ten
Doris Stewart started her practice as a design consultant on September 1, 2012. During the
first month of operations, the business completed the following transactions:
Sept. 1 Received $42,000 cash and gave capital to Stewart.
4 Purchased supplies, $700, and furniture, $1,900, on account.
6 Performed services for a law firm and received $1,400 cash.
7 Paid $24,000 cash to acquire land for a future office site.
10 Performed service for a hotel and received its promise to pay the $1,000 within
one week.
14 Paid for the furniture purchased September 4 on account.
15 Paid secretary’s bi-monthly salary, $490.
17 Received cash on account, $400.
20 Prepared a design for a school on account, $700.
28 Received $2,100 cash for consulting with Plummer & Gorden.
30 Paid secretary’s bi-monthly salary, $490.
30 Paid rent expense, $650.
30 Stewart withdrew cash of $3,000.

Requirements
1. Open the following T-accounts: Cash; Accounts receivable; Supplies; Furniture; Land;
Accounts payable; Stewart, capital; Stewart, drawing; Service revenue; Salary expense;
and Rent expense.
2. Record each transaction in the journal, using the account titles given. Key each
transaction by date. Explanations are not required.
3. Post the transactions to the T-accounts, using transaction dates as posting references in
the ledger accounts.
4. Prepare the trial balance of Doris Stewart, Designer, at September 30, 2012.
 eleven
Trevor Moore opened a law office on September 2, 2012. During the first
month of operations, the business completed the following transactions:
Sept. 2 Moore deposited $39,000 cash in the business bank account Trevor Moore, Attorney.
The business gave capital to Moore.
3 Purchased supplies, $600, and furniture, $2,000, on account.
4 Performed legal service for a client and received cash, $1,300.
7 Paid cash to acquire land for a future office site, $26,000.
11 Prepared legal documents for a client on account, $700.
15 Paid secretary’s bi-monthly salary, $590.
16 Paid for the supplies purchased September 3 on account.
18 Received $2,400 cash for helping a client sell real estate.
19 Defended a client in court and billed the client for $800.
29 Received cash on account, $700.
30 Paid secretary’s bi-monthly salary, $590.
30 Paid rent expense, $670.
30 Moore withdrew cash of $2,400.
Requirements
1. Open the following T-accounts: Cash; Accounts receivable; Supplies; Furniture; Land;
Accounts payable; Moore, capital; Moore, drawing; Service revenue; Salary expense;
and Rent expense.
2. Record each transaction in the journal, using the account titles given. Key each
transaction by date. Explanations are not required.
3. Post the transactions to T-accounts, using transaction dates as posting references in the
ledger.
4. Prepare the trial balance of Trevor Moore, Attorney, at September 30, 2012.
 twelve
Maurey Wills started an environmental consulting company and during the first month of
operations (February 2012), the business completed the following transactions:
a. Wills began the business with an investment of $48,000 cash and a building at $30,000.
The business gave $78,000 of capital to Wills.
b. Purchased office supplies on account, $2,000.
c. Paid $14,000 for office furniture.
d. Paid employee’s salary, $2,200.
e. Performed consulting services on account, $3,700.
f. Paid $900 of the account payable created in transaction (b).
g. Received a $600 bill for advertising expense that will be paid in the near future.
h. Performed consulting service for cash, $1,100.
i. Received cash on account, $1,100.
j. Paid the following cash expenses: (1) Rent on equipment, $1,000. (2) Utilities, $900.
k. Wills withdrew cash of $2,300.
Requirements
1. Open the following four-column accounts: Cash; Accounts receivable; Office supplies;
Office furniture; Building; Accounts payable; Wills, capital; Wills, drawing; Service
revenue; Salary expense; Rent expense; Advertising expense; and Utilities expense.
2. Record each transaction in the journal. Use the letters to identify the transactions.
3. Post to the accounts and keep a running balance for each account.
4. Prepare the trial balance of Wills Environmental Consulting Company at February 29,
2012.
 Thirteen
On June 1, 2008, Brooks Dodd established an interior decorating business, Coordinated
Designs. During the month, Brooks completed the following transactions related to the
business:
June 1. Brooks transferred cash from a personal bank account to an account to be used
for the business, $18,000.
5. Paid rent for period of June 5 to end of month, $2,150.
6. Purchased office equipment on account, $8,500.
8. Purchased a used truck for $18,000, paying $10,000 cash and giving a note payable
for the remainder.
10. Purchased supplies for cash, $1,200.
12. Received cash for job completed, $10,500.
15. Paid annual premiums on property and casualty insurance, $2,400.
23. Recorded jobs completed on account and sent invoices to customers, $5,950.
24. Received an invoice for truck expenses, to be paid in July, $1,000.
29. Paid utilities expense, $1,200.
29. Paid miscellaneous expenses, $400.
30. Received cash from customers on account, $3,200.
30. Paid wages of employees, $2,900.
30. Paid creditor a portion of the amount owed for equipment purchased on June 6,
$2,125.
30. Withdrew cash for personal use, $1,750.
Instructions
1. Journalize each transaction in a two-column journal, referring to the following chart
of accounts in selecting the accounts to be debited and credited. 11 Cash, 12
Accounts Receivable, 13 Supplies, 14 Prepaid Insurance, 16 Equipment, 18 Truck, 21
Notes Payable, 22 Accounts Payable, 31 Brooks Dodd, Capital, 32 Brooks Dodd,
Drawing, 41 Fees Earned 51 Wages Expense 53 Rent Expense 54 Utilities Expense,
55 Truck Expense and 59 Miscellaneous Expense
2. Post the journal to a ledger of four-column accounts, inserting appropriate posting
references as each item is posted. Extend the balances to the appropriate balance
columns after each transaction is posted.
3. Prepare trial balance for Coordinated Designs as of June 30, 2008.