During April, the business completed the following transactions:
Apr. 4 Collected $2,000 cash from a client on account.
8 Performed tax services for a client on account, $5,400.
13 Paid $3,300 on account.
14 Purchased furniture on account, $4,600.
15 Howe contributed his personal automobile to the business in exchange for common stock. The automobile had a market value of $10,000.
18 Purchased office supplies on account, $1,000.
19 Received $2,700 for tax services performed on April 8.
20 Paid cash dividends of $4,000.
21 Received $3,800 cash for consulting work completed.
24 Received $1,400 cash for accounting services to be completed next month.
27 Paid office rent, $600.
28 Paid employee salary, $1,000.
Requirements
1. Record the April transactions in the journal using the following accounts: Cash; Accounts Receivable; Office Supplies; Furniture; Automobile; Land; Accounts Payable; Unearned Revenue; Common Stock; Dividends; Service Revenue; Salaries Expense; and Rent Expense. Include an explanation for each entry.
2. Open the four-column ledger accounts listed in the trial balance, together with their balances as of March 31. Use the following account numbers: Cash, 11; Accounts Receivable, 12; Office Supplies, 13; Furniture, 14; Automobile, 15;
Land, 16; Accounts Payable, 21; Unearned Revenue, 22; Common Stock, 31; Dividends, 33; Service Revenue, 41; Salaries Expense, 51; and Rent Expense, 52.
3. Post the journal entries to four-column accounts in the ledger, using dates, account numbers, journal references, and posting references. Assume the journal entries were recorded on page 5 of the journal.
4. Prepare the trial balance of James Howe, CPA, at April 30, 2017.

Lincoln Company earns income of $25,000 in 2017 and $30,000 in 2018. Lincoln Company declares a 25-cent per-share cash dividend on December 22, 2018, payable January 12, 2019, to stockholders of record on December 30, 2018.
During 2018, Lincoln sells merchandise costing $10,000 to Tucker for $15,000. Twenty percent of the merchandise is still in Tucker ending inventory on December 31; 2018. The fair value of the investment is $135,000 on December 31, 2017, and $145,000 on December 31, 2018.
1. Assuming the use of the equity method, prepare the adjustment on Tucker books on December 31, 2017, and December 31, 2018, to account for its investment in Lincoln Company. Assume Tucker Corporation makes no adjustment except at the end of each calendar year. Ignore income tax considerations.
2. Assuming the use of the fair value option, prepare the adjustment on Tucker books on December 31, 2017, and December 31, 2018, to account for its investment in Lincoln Company. Assume Tucker Corporation makes no adjustment except at the end of each calendar year. Ignore income tax considerations.

a. Jamal owns an electrical appliance repair service. When a client pays him in cash, he gives the cash to his daughter, Tasha. Jamal does not report the cash he gives to Tasha in his business income. Tasha has no other income, and the amount of cash that she receives from Jamal is small enough that she is not required to file a tax return.