The trial balance of Thomson Engineering at February 28, 2017, is shown below — During March completed following transactions

The trial balance of Thomson Engineering at February 28, 2017, is shown below:

During March, Thomson Engineering completed the following transactions:

Mar. 4 Collected $600 cash from a client on account.

8 Designed a system for a client on account, $580.

13 Paid cash for items purchased on account, $320.

18 Purchased supplies on account, $120.

20 R. Thomson withdrew $200 cash for personal use.

21 Received a verbal promise of a $2,000 contract.

22 Received cash of $620 for consulting work just completed.

31 Paid employees’ salaries, $1,300 cash.

Required

1. Record the March transactions in Page 3 of the journal. Include an explanation for each entry.

2. Open three-column ledger accounts for the accounts listed in the trial balance, together with their balances at February 28. Enter Bal. (for previous balance) in the Item column, and place a check mark (✓) in the journal reference column for the February 28 balance in each account.

3. Post the transactions to the ledger, using dates, account numbers, journal references, and posting references.

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SOLUTION

Req. 1 (journal entries)

Journal PAGE 3
DATE 2017	DATE 2017	ACCOUNT TITLES AND EXPLANATIONS	POST. REF.	DEBIT	CREDIT
Mar.	4	Cash	1100	600
		Accounts Receivable	1200		600
		Received cash on account.
	8	Accounts Receivable	1200	580
		Service Revenue	5000		580
		Performed service on account.
	13	Accounts Payable	2000	320
		Cash	1100		320
		Paid on account.
	18	Supplies	1300	120
		Accounts Payable	2000		120
		Purchased supplies on account.
	20	R. Thomson, Withdrawals	3100	200
		Cash	1100		200
		Withdrawal for personal use.
	21	Verbal promise only; not a
		transaction of the business.
	22	Cash	1100	620
		Service Revenue	5000		620
		Performed service for cash.
	31	Salary Expense	6200	1,300
		Cash	1100		1,300
		Paid employee salaries.

Req. 2 and 3 (ledger accounts)

ACCOUNT CASH ACCOUNT NO. 1100
DATE 2017	DATE 2017	ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE
Feb.	28	Bal.				4,000 (Dr)
Mar.	4		J.3	600		4,600 (Dr)
	13		J.3		320	4,280 (Dr)
	20		J.3		200	4,080 (Dr)
	22		J.3	620		4,700 (Dr)
	31		J.3		1,300	3,400 (Dr)

ACCOUNT ACCOUNTS RECEIVABLE ACCOUNT NO. 1200
DATE 2017	DATE 2017	ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE
Feb.	28	Bal.				16,000 (Dr)
Mar.	4		J.3		600	15,400 (Dr)
	8		J.3	580		15,980 (Dr)

ACCOUNT SUPPLIES ACCOUNT NO. 1300
DATE 2017	DATE 2017	ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE
Feb.	28	Bal.				3,600 (Dr)
Mar.	18		J.3	120		3,720 (Dr)

ACCOUNT AUTOMOBILE ACCOUNT NO. 1600
DATE 2017	DATE 2017	ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE
Feb.	28	Bal.				37,200 (Dr)

ACCOUNT ACCOUNTS PAYABLE ACCOUNT NO. 2000
DATE 2017	DATE 2017	ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE
Feb.	28	Bal.				8,000 (Cr)
Mar.	13		J.3	320		7,680 (Cr)
	18		J.3		120	7,800 (Cr)

Req. 2 and 3 (ledger accounts)

ACCOUNT R. THOMSON, CAPITAL ACCOUNT NO. 3000
DATE 2017	DATE 2017	ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE
Feb.	28	Bal.				50,000 (Cr)

ACCOUNT R. THOMSON, WITHDRAWALS ACCOUNT NO. 3100
DATE 2017	DATE 2017	ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE
Feb.	28	Bal.				4,400 (Dr)
Mar.	20		J.3	200		4,600 (Dr)

ACCOUNT SERVICE REVENUE ACCOUNT NO. 5000
DATE 2017	DATE 2017	ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE
Feb.	28	Bal.				16,400 (Cr)
Mar.	8		J.3		580	16,980 (Cr)
	22		J.3		620	17,600 (Cr)

ACCOUNT RENT EXPENSE ACCOUNT NO. 6100
DATE 2017	DATE 2017	ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE
Feb.	28	Bal.				2,000 (Dr)

ACCOUNT SALARY EXPENSE ACCOUNT NO. 6200
DATE 2017	DATE 2017	ITEM	JRNL. REF.	DEBIT	CREDIT	BALANCE
Feb.	28	Bal.				7,200 (Dr)
Mar.	31		J.3	1,300		8,500 (Dr)