Delux Design Company creates radio and television advertising for local businesses in the twin cities. The following alphabetical list shows Delux Design's account balances as of January 31, 2011:

Accounts Payable ........... $ 3,210

Accounts Receivable ......... 39,000

Cash ............... 9,200

Design Revenue ........... 105,000

Equipments ............?

J. Smith, Capital .......... 37,000

J. Smith, Withdrawals ........ 18,000

Loans Payable ........... 5,000

Rent Expense ........... 5,940

Telephone Expense ......... 480

Unearned Revenue .......... 9,000

Wages Expense ........... 62,000

Required

Insert the account title at the top of its corresponding T account and enter the dollar amount as a normal balance in the account. Determine the balance of Equipment and then show that the accounting equation is in balance.

Transcribed Image Text:

Owner's Equity Assets -Liabilities + J.Smith - J.Smith, + Revenues-Expenses Capital Withdrawals