Financial Accounting and the Entrepreneur

Financial Accounting and the Entrepreneur

Donna White started her practice as a design consultant on January 1, 2012. During the first month of operations,
the business completed the following transactions:

Jan 1 Received $35.000 cash and gaver capital to white
4 purchased supplies, $300, and furniture, $2.200, on account
6 performed services for a law firm and recieved $2.000 cash
7 paid $23.000 cash to acquire land for a future office site
10 performed service for a hotel and recieved its promise to pay the $900 within one week
14 paid for the furniture purchased january 4 on account
15 paid secretary's bi-monthly salari, $590
17 recieved cash on account, $700
20 Prepared a design for a school on account, $700
28 received $2.400 cash for consulting with plummer & gorden
31 paid rent expense, $490
31 white withdrew $2.300 for personal use

Requirements
1. Record each transaction in the journal. Key each transaction by date.
Explanations are not required.
2. Post the transactions to T-accounts, using transaction dates as posting references in the ledger
accounts. Label the balance of each account "Bal."
3. Prepare the trial balance of Donna White, Designer, at January 31, 2012.

Financial Accounting and the Entrepreneur


Vince Smith opened a law office on March 2, 2012. During the first month of operations, the business
completed the following transactions:

Mar. 2 Smith deposited $42.000 cash in the business bank account Vince Smith, Attorney
3 purchased supplies, $400, and furniture, $1.900, on account
4 performed legal services for a clien and recieved cash $1.900
7 paid cash to acquire land for a future office site, $26.000
11 prepared legal documents for a client on account, $800
15 paid secretary's bi-monthly salari, $550
16 Paid for the supplies purchased March 3 on account
18 recieved $2.300 cash for helping a client sell real estate
19 defended a client in court and billed the client for $700
29 received cash on account, $600
31 paid secretary's bi-monthly salari, $550
31 paid rent expense, $910
31 white withdrew $2.100 for personal use

Requirements
1. Record each transaction in the journal, using the account titles given. Key each transaction
by date. Explanations are not required.
2. Post the transactions to T-accounts, using transaction dates as posting references in the ledger
accounts. Label the balance of each account "Bal."
3. Prepare the trial balance of Vince Smith, Attorney at March 31, 2012.
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