Reference no: EM131528070

Question: After recording the transactions of Exercise in T-accounts and calculating the balance of each account, prepare a trial balance. Use May 31, 2011, as its report date.

Exercise: Prepare general journal entries to record the transactions below for Dexter Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; M. Dexter, Capital; M. Dexter, Withdrawals; Fees Earned; and Rent Expense. Use the letters beside each transaction to identify entries. After recording the transactions, post them to T-accounts, which serves as the general ledger for this assignment. Determine the ending balance of each T-account.

a. Macy Dexter, owner, invested $12,750 cash in the company.

b. The company purchased office supplies for $375 cash.

c. The company purchased $7,050 of office equipment on credit.

d. The company received $1,500 cash as fees for services provided to a customer.

e. The company paid $7,050 cash to settle the payable for the office equipment purchased in transaction c.

f. The company billed a customer $2,700 as fees for services provided.

g. The company paid $525 cash for the monthly rent.

h. The company collected $1,125 cash as partial payment for the account receivable created in transaction f.

i. Macy Dexter withdrew $1,000 cash from the company for personal use.