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Question: journalizing transactions posting to taccounts and preparing a trial...

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ΘΘΟΘ Journalizing transactions, posting to T-accounts, and preparing a trial balance [40-50 min] Problem 2-62 continues with the consulting business of Carl Draper, begun in Problem 1-48. Here you will account for Draper Consultings transactions as it is actually done in practice. P2-62 Draper Consulting completed the following transactions during the first half of December, 2012: Dec 2 Received S18,000 cash and gave capital to Draper. 2 Paid monthly office rent. S550. 3 Paid cash for a Dell computer. S1.800. This equipment is expecred to remain in service for five years. 4 Purchased office furniture on account. $4.200. The furniturc should last for five years. supplies on accounr, 5900. 9 Performed consulting scrvier for a client on account, S1.500 12 Paid uriliry expenses. S250. 18 Performed service for a clienr and received cash of $1,100 Requirements 1. Open T-accounts: Cash; Accounts receivable; Supplies; Equipment; Furniture; Accounts payable; Draper, capital; Draper, drawing; Service revenue; Rent expense; and Utilities expense. 2. Journalize the transactions. Explanations are not required. 3. Post to the T-accounts. Key all items by date, and denote an account balance as Bal. Formal posting references are not required. Prepare a trial balance at December 18. In the Continuing Problem of Chapter 3, we will add transactions for the remainder of December and prepare a trial bal- ance at December 31 4.

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