Reference no: EM13553588

Journalizing transactions, posting to accounts in four-column format, and preparing a trial balance

The trial balance of Sam Mitchell, CPA, is dated January 31, 2012:

SAM MITCHELL, CPA Trial Balance 31-Jan-12
Account No.	Account	Debit	Credit
11	Cash	$ 7,000
12	Accounts receivable	10,500
13	Supplies	600
14	Land	17,000
21	Accounts payable		4,700
31	Mitchell, capital		30,400
3	Mitchell, drawing
41	Service revenue
51	Salary expense
52	Rent expense
	Total	$35,100	$35,100

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 Mitchell withdrew cash 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.
27 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, at February 29, 2012.