Hannah Knox, an architect, opened an office on July 1, 2008. During the month, she completed the following transactions connected with her professional practice:

a. Transferred cash from a personal bank account to an account to be used for the business, $25,000.

b. Paid July rent for office and workroom, $2,000.

c. Purchased used automobile for $16,500, paying $1,500 cash and giving a note payable for the remainder.

d. Purchased office and computer equipment on account, $6,500.

e. Paid cash for supplies, $975.

f. Paid cash for annual insurance policies, $1,200.

g. Received cash from client for plans delivered, $3,750.

h. Paid cash for miscellaneous expenses, $240.

i. Paid cash to creditors on account, $2,500.

j. Paid installment due on note payable, $450.

k. Received invoice for blueprint service, due in August, $750.

l. Recorded fee earned on plans delivered, payment to be received in August, $3,150.

m. Paid salary of assistant, $1,500.

n. Paid gas, oil, and repairs on automobile for July, $280.

Instructions

1. Record the above transactions directly in the following T accounts, without journalizing:

Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Notes Payable; Accounts Payable; Hannah Knox, Capital; Professional Fees; Rent Expense; Salary Expense; Automobile Expense; Blueprint Expense; Miscellaneous Expense. To the left of the amount entered in the accounts, place the appropriate letter to identify the transaction.

2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.

3. Prepare an unadjusted trial balance for Hannah Knox, Architect, as of July 31, 2008.