Asked by Amanda Rettenmaier on Jul 17, 2024
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Mary Sunny,the sole stockholder,began business as Sunny Law Firm on November 1.Record the following November transactions by making entries directly to the T-accounts provided.Next,prepare a trial balance as of November 30.
a)Mary invested $15,000 cash and a law library valued at $6,000 in exchange for common stock.
b)Purchased $7,500 of office equipment from John Bronx on credit.
c)Completed legal work for a client and received $1,500 cash in full payment.
d)Paid John Bronx $3,500 cash in partial payment of the amount owed.
e)Completed $4,000 of legal work for a client on credit.
f)Paid $2,000 in cash dividends.
g)Received $2,500 cash as partial payment for the legal work completed for the client in (e).
h)Paid $2,500 cash for the secretary's salary.
T-Accounts
A graphic representation of financial transactions in the general ledger of a double-entry bookkeeping system where the left (debit) and right (credit) sides reflect different types of transactions.
Trial Balance
A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that should match.
- Outline the approach to capture and post financial activities in the accounting structure.
- Acquire knowledge on the purpose and the foundational concept of a trial balance in accounting.
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Learning Objectives
- Outline the approach to capture and post financial activities in the accounting structure.
- Acquire knowledge on the purpose and the foundational concept of a trial balance in accounting.