AP 2–7

Acct.

Account

No.

Account

Balance

101

Cash

$25,200

110

Accounts receivable

12,000

162

Prepaid rent

1,500

180

Land

12,000

181

Building

24,000

182

Furniture

9,000

183

Equipment

75,000

184

Truck

3,500

210

Accounts payable

4,000

320

Share capital

158,200

340

Retained earnings

-0-

Dec.

2

Paid $200 of the accounts payable

3

Collected in full an account receivable of $700

4

Purchased equipment for $500 cash

5

Billed customers for $2,000 of services provided in December

8

Issued additional shares for $20,000 cash

10

Collected $1,500 owing from a customer

11

Purchased equipment for $25,000; paid $5,000 cash, the balance to be paid within 30 days (recorded as accounts payable)

15

Paid salaries of $1,000

16

Paid $600 of the accounts payable

20

Paid $15,000 cash in partial settlement of the liability of December 11; issued a note payable for the balance

24

Paid utilities of $50

30

Received a bill for December telephone services

31

Collected in full an account receivable of $400

31

Paid salaries of $1,000

31

Transferred $500 prepaid rent to rent expense for December

31

Received $1,000 cash for services to be performed in January 2016.

Required:

1.

Open general ledger T-accounts for the accounts listed in the trial balance above. Add accounts and account numbers as follows:

Bank loan

201

Other unearned revenue

249

Service revenue

470

Rent expense

654

Salaries expense

656

Telephone expense

669

Utilities expense

676

2.

Enter the November 30 balances and ensure total debits equal total credits. Journalize the December transactions.

3.

Post the December entries and determine the balances for each general ledger account at December 31.

4.

Prepare a trial balance as at December 31, 2015. Ensure total debits equals total credits.

5.

Prepare an income statement and statement of changes in equity for the month ended December 31, 2015 and a balance sheet as at December 31, 2015.