Recording, Posting

and Preparingthe
Trial Balance
Lecture 4
Instructions: Record the above transactions, post to the ledger and prepare the trial balance.
N.B. The references are Cash 101, A/R 102, Office Supplies 103, Equipment 110, Accounts Payable 201, Owner’s Capital 301, Owner’s Drawings
401, Service Revenues 501, Rent Expenses 601, Advertising Expenses 602, Salaries Expenses 603
1. Recording the transactions in the general journal (preparing journal entries):

Transaction Accounts title and Explanation Reference Dr. Cr.

1 Cash 101 15,000
Owner's Capital 301 15,000
2 Rent Expenses 601 600
Cash 101 600
3 Equipment 110 3,000
Cash 101 3,000
4 Advertising Expenses 602 700
Accounts Payable 201 700
5 Office Supplies 103 900
Cash 101 900
6 Cash 101 3,000
Accounts Receivable 102 7,000
Service Revenues 501 10,000
7 Owner's Drawings 401 600
Cash 101 600
8 Accounts Payable 201 500
Cash 101 500
9 Salaries Expenses 603 2,500
Cash 101 2,500
10 Cash 101 4,000
Accounts Receivable 102 4,000
2. Posting to the ledger:
Cash 101 Owner's Capital 301
Dr Cr Dr Cr
1 Owner's Capital 15,000 2 Rent expenses 600 1 Cash 15,000
6 Service Revenues 3,000 3 Equipment 3,000 Balance 15,000
10 Accounts receivable 4,000 5 Office supplies 900
7 Owner's Drawings 600 Owner's Drawing 401
8 Accounts payable 500 Dr Cr
9 Salaries expenses 2,500 7 Cash 600
22,000 8100 Balance 600
Balance 13,900

Accounts Receivable 102 Service Revenues 501

Dr Cr Dr Cr
6 Service Revenues 7,000 10 Cash 4,000 6 Cash, Accounts Rec. 10,000
7,000 4,000 Balance 10,000
Balance 3,000
Rent Expenses 601
Office Supplies 103 Dr Cr
Dr Cr 2 Cash 600
5 Cash 900 Balance 600
Balance 900
Advertising Expenses 602
Equipment 110 Dr Cr
Dr Cr 4 Accounts Payable 700
3 Cash 3,000 Balance 700
Balance 3,000
Salaries Expenses 603
Accounts Payable 201 Dr Cr
Dr Cr 9 Cash 2,500
8 Cash 500 4 Advertising Expenses 700 Balance 2,500
500 700
Balance 200
3. Preparing Trial Balance:
Trial Balance
Ref Accounts Dr Cr
101 Cash $ 13,900
102 Accounts Receivable 3,000
103 Office Supplies 900
110 Equipment 3,000
201 Accounts Payable $ 200
301 Owner's Capital 15,000
401 Owner's Drawings 600
501 Service Revenues 10,000
601 Rent Expenses 600
602 Advertising Expenses 700
603 Salaries Expenses 2,500
Total $ 25,200 $ 25,200