Accounts Receivable and Debit Credit

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The trial balance of Sam Mitchell, CPA, P.C., is dated January 31, 2012: [pic]
.:.
During February, Mitchell or his business completed the following transactions: Feb 4 Collected $4,000 cash from a client on account.
8 Performed tax services for a client on account, $4,600.
13 Paid business debt on account, $2,400.
18 Purchased office supplies on account, $900.
20 Paid cash dividends of $2,200.
21 Mitchell paid for a deck for his private residence using personal funds, $8,000. 22 Received $2,300 cash for consulting work just completed.
2 Paid office rent, $500.
29 Paid employee salary, $1,600.
Requirements
1. Record the February transactions in the journal. Include an explanation for each entry. 2. Post the transactions to four-column accounts in the ledger, using dates, account numbers, journal references, and posting references. Open the ledger accounts listed in the trial balance, together with their balances at January 31. 3. Prepare the trial balance of Sam Mitchell, CPA, P.C., at February 29, 2012.

SOLUTION:

Req. 1

| Journal | |DATE |ACCOUNTS AND EXPLANATIONS |POST. |DEBIT |CREDIT | | | |REF. | | | |Feb | 4 |Cash |11 |4,000 | | | | | Accounts receivable |12 | |4,000 | | | |Received cash on account. | | | | | | | | | | | | | 8 |Accounts receivable |12 |4,600 | | | | | Service revenue |41 | |4,600 | | | |Performed services on account. | | | | | | | | | | | | |13 |Accounts payable |21 |2,400 | | | | | Cash |11 | |2,400 | | | |Paid on account. | | | | | | | | | | | | |18 |Supplies |13 |900 | | | | | Accounts payable |21 | |900 | | | |Purchased supplies on account. | | | | | | | | | | | | |20 |Dividends |32...
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