Bernie Pillows opened a consulting company in Fairview and the following transactions resulted:

A. Bernie invested $20,000 in the consulting business.

B. Bought office equipment on account, $5,000.

C. Received cash for consulting work that it completed for a client, $900.

D. Bernie paid a personal bill from the company bank account, $90.

E. Paid advertising expense for the month, $400.

F. Rent expense for the month was due but not yet paid, $1,400.

G. Paid $1,000 as partial payment of what was owed from the transaction in B.

As Bernie’s accountant, analyze and record the transactions in T account form. Set up the T accounts on the basis of the chart of accounts on page 82. Enter each transaction in the appropriate T account and label it with the letter of the transaction.

Transcribed Image Text:

Chart of Accounts Assets Cash 111 Office Equipment 121 Liabilities Accounts Payable 211 Revenue Consulting Fees Earned 411 Expenses Advertising Expense 511 Rent Expense 512 Owner's Equity Bernie Pillows, Capital 311 Bernie Pillows, Withdrawals 312