Journalizing transactions, posting to T-accounts, and preparing a trial balance Problem 2-62 continues with the consulting business of Carl Draper, begun in Problem 1-48. Here you will account for Draper Consulting"s transactions as it is actually done in practice.

 

 

P2-62 Draper Consulting completed the following transactions during the first half of December, 2012:

 

 

 

 

 

Dec 2   Â	Received $18,000 cash and gave capital to Draper.   Â
2   Â	Paid monthly office rent, $550.   Â
3   Â	Paid cash for a Dell computer, $1,800. This equipment is expected to remain in service for five years.   Â
4   Â	Purchased office furniture on account, $4,200. The furniture should last for five years.   Â
5   Â	Purchased supplies on account, $900.   Â
9   Â	Performed consulting service for a client on account, $1,500.   Â
12   Â	Paid utility expenses, $250.   Â
18   Â	Performed service for a client and received cash of $1,100.   Â

 

 

 

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.