Question

Zenith Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Retained Earnings; Dividends; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.

Transactions
Mar.1 Paid rent for the month, $4,000.
3 Paid advertising expense, $1,350.
5 Paid cash for supplies, $1,800.
6 Purchased office equipment on account, $11,500.
10 Received cash from customers on account, $8,600.
15 Paid creditor on account, $3,180.
27 Paid cash for miscellaneous expenses, $700.
30 Paid telephone bill for the month, $550.
31 Fees earned and billed to customers for the month, $37,200.
31 Paid electricity bill for the month, $830.
31 Paid dividends, $2,000.
Journalize the preceding selected transactions for March 2018 in a two-column journal. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS
Zenith Consulting Co.
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Office Equipment
LIABILITIES
21 Accounts Payable
EQUITY
31 Common Stock
32 Retained Earnings
33 Dividends
REVENUE
41 Fees Earned
EXPENSES
51 Rent Expense
52 Advertising Expense
53 Utilities Expense
54 Miscellaneous Expense

Answer 1

Date Account Title and Explanation Debit Credit

Mar-01 Rent expenses $4,000

Cash $4,000

(To record payment of rent for the month)

Mar-03 Advertising expenses $1,350

Cash $1,350

(To record payment advertising expenses for the month)

Mar-05 Supplies $1,800

Cash $1,800

(To record payment for supplies)

Mar-06 Office equipment $11,500

Accounts payable $11,500

(To record purchase of office equipment on account)

Mar-10 Cash $8,600

Accounts receivable $8,600

(To record cash receipt from customers on account)

Mar-15 Accounts payable $3,180

Cash $3,180

(To record payment to creditors on account)

Mar-27 Misc. expenses $700

Cash $700

(To record payment for misc. expenses)

Mar-30 Utilities expenses $550

Cash $550

(To record payment for telephone expenses for the month)

Mar-31 Accounts receivable $37,200

Fees earned $37,200

(To record fee earned and billed to customer for the month)

Mar-31 Utilities expenses $830

Cash $830

(To record payment for electricity bill for the month)

Mar-31 Dividends $2,000

Cash $2,000

(To record payment of dividends)