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Instructions (A) Journalize The Transactions. (B) Post To The Ledger Accounts. (C) Prepare A Trial Balance On May 31, 2010

Jane Kent invested $25,000 cash to start her CPA business. During May, she hired a secretary, purchased supplies, paid rent, completed tax and consulting work for clients, and paid expenses. She must journalize and post these transactions, then prepare a trial balance on May 31.

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112 views1 page

Instructions (A) Journalize The Transactions. (B) Post To The Ledger Accounts. (C) Prepare A Trial Balance On May 31, 2010

Jane Kent invested $25,000 cash to start her CPA business. During May, she hired a secretary, purchased supplies, paid rent, completed tax and consulting work for clients, and paid expenses. She must journalize and post these transactions, then prepare a trial balance on May 31.

Uploaded by

sadif sayeed
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© © All Rights Reserved
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P2-2A Jane Kent is a licensed CPA.

During the first month of operations of her business, the following events and
transactions occurred.
May 1 Kent invested $25,000 cash.
2 Hired a secretary-receptionist at a salary of $2,000 per month.
3 Purchased $2,500 of supplies on account from Read Supply Company.
7 Paid office rent of $900 cas h for the month.
11 Completed a tax assignment and billed client $2,100 for services provided.
12 Received $3,500 advance on a management consulting engagement.
17 Received cash of $1,200 for services completed for H. Arnold Co.
31 Paid secretary-receptionist $2,000 salary for the month.
31 Paid 40% of balance due Read Supply Company.
Jane uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201
Accounts Payable, No. 205 Unearned Revenue, No. 301 Jane Kent, Capital; No. 400 Service Revenue, No. 726 Salaries
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, 2010.

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