Acc205 Principles of Accounting: P2-62 Draper Consulting Continuing Problem

Acc205 Principles of Accounting
Draper Consulting Continuing Problem
P2-62 Draper Consulting completed the following transactions during the first half of December, 2012
Dec. 2 Received $18,000 cash and gave capital to Draper.
2 Paid monthly office rent, $550 3 Paid cash for a Dell computer, $1,800. This equipment is expected to remain in service for five years..
4 Purchased office furniture on account, $4,200. The furniture should last for five years.
5 Purchased supplies on account, $900
9 Performed consulting service for a client on account, $1,500.
12 Paid utility expenses, $250.
18 Performed service for a client and received cash of $1,100.

Requirements:
1. Open T-accounts: Cash; Accounts receivable; Supplies; Equipment; Furniture; Accounts payable; Draper, capital; Draper, drawing; Service revenue; Rent expense; and Utilities expense.
2. Journalize the transactions. Explanations are not required.
3. Post to the T-accounts. Key all items by date, and denote an account balance as Bal. Formal posting references are not required
4. Prepare a trial balance at December 18. In the Continuing Problem of Chapter 3, we will add transactions for the remainder of December and prepare a trial balance at December 31.
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