Daniel Hagell operates a gardening consulting business. His business had the following selected transactions:
a. Paid cash for miscellaneous items, $150.
b. Paid an insurance broker $900 in insurance premiums for two years’ coverage.
c. Fees earned and billed to clients for the month, $4,000.
d. Paid the electricity bill, $50.
e. Paid creditors on account, $400.
f. Withdrew cash for personal use, $1,000.
Instructions
Record the above transactions directly in the following T accounts, without journalizing: Cash; Accounts Receivable; Prepaid Expense; Accounts Payable; Daniel Hagell, Capital; Daniel Hagell, Withdrawals; Miscellaneous Expense; Fees Earned; Utilities Expense. To the left of each amount entered in the accounts, place the appropriate letter to identify the transaction.