Recording the opening balances and transactions


Response to the following problem:

The following balances appeared on the transactions worksheet of Hill Chairs Inc. on April 1, 2015.

921_transactions worksheet.jpg

The following transactions occurred during April:

a. Collected $2,000 cash in satisfaction of an amount owed by a customer

b. Billed $3,000 to customers for chairs rented to date

c. Paid the following expenses: advertizing, $300; salaries, $2,000; telephone, $100

d. Paid half of the accounts payable

e. Received a $500 bill for April truck operating expenses

f. Collected $2,500 in satisfaction of an amount owed by a customer

g. Billed $1,500 to customers for chairs rented to date

h. Transferred $500 of prepaid expenses to rent expense

i. Counted $200 of supplies still on hand (recorded the amount used as an expense)

j. Issued additional share capital and received $1,000 cash

k. Paid $200 dividend in cash.

Required: Record the opening balances and the above transactions on a transactions worksheet and calculate the total of each column at the end of April. (Use the headings above on your worksheet.)

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Accounting Basics: Recording the opening balances and transactions
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