Jan. 1 Murray contributed $75,000 cash to the business, Taylor Murray, Attorney.
The business gave capital to Murray.
3 Purchased office supplies, $700, and furniture, $1,300, on account.
4 Performed legal services for a client and received $1,900 cash.
7 Purchased a building with a market value of $110,000, and land with a market value of $22,000. The business paid $25,000 cash and signed a note payable to the bank for the remaining amount.
11 Prepared legal documents for a client on account, $1,100.
15 Paid assistant's semimonthly salary, $1,190.
16 Paid for the office supplies purchased on January 3 on account.
18 Received $2,100 cash for helping a client sell real estate.
19 Defended a client in court and billed the client for $1,700.
25 Received a bill for utilities, $700. The bill will be paid next month.
29 Received cash on account, $1,800.
30 Paid $4,800 cash for a 12-month insurance policy starting on February 1.
30 Paid assistant's semimonthly salary, $1,190.
31 Paid monthly rent expense, $1,100.
31 Murray withdrew cash of $2,600.
1. Record each transaction in the journal, using the following account titles:
Cash; Accounts Receivable; Office Supplies; Prepaid Insurance;
Furniture; Building; Land; Accounts Payable; Utilities Payable; Notes Payable;
Murray, Capital; Murray, Withdrawals; Service Revenue; Salaries Expense;
Rent Expense; and Utilities Expense. Explanations are not required.
2. The following four-column accounts have been opened for each of the
accounts. Cash, 101; Accounts Receivable, 111; Office Supplies, 121;
Prepaid Insurance, 131; Furniture, 141; Building, 151; Land, 161;
Accounts Payable, 201; Utilities Payable, 211; Notes Payable, 221; Murray,
Capital, 301; Murray, Withdrawals, 311; Service Revenue, 411;
Salaries Expense, 511; Rent Expense, 521; and Utilities Expense, 531. Post
the journal entries to four-column accounts in the ledger, using dates,
account numbers, journal references, and posting references. Assume the
journal entries were recorded on page 1 of the journal.
3. Prepare the trial balance of Taylor Murray, Attorney, at January 31, 2017.