A. P. Karas, Attorney at Law, opened her office on September 1. P.0.1,2,3,4 The account headings are presented below. Transactions completed during the month follow.

a. Deposited $21,000 in a bank account in the name of the business, A. P.
Karas, Attorney at Law.

b. Bought office equipment on account from Morgan Company, $14,700.

c. Invested her professional library costing $5,700. (Increase the account for Library and the account of A. P. Karas, Capital.)

d. Paid office rent for the month, $760.

e. Bought office supplies for cash, $885.

f. Paid the premium for a two-year insurance policy on the equipment and the library, $186.
g. Received professional fees for services rendered, $2,460 (Professional Fees).
h. Received and paid bill for telephone service, $228 (Telephone Expense).
i. Paid salary of part-time receptionist, $960.
j. Paid automobile expense, $288 (Automobile Expense).
k. Received professional fees for services rendered, $2,120.
l. Paid Morgan Company part payment on amount owed for the purchase of office equipment recorded earlier, $1,500.
m. Karas withdrew cash for personal use, $2,075 Instructions 1. In the equation, complete the asset section and list the owner’s name above the term Capital.
2. Record the transactions and the balance after each transaction. Identify the accounts affected when the transaction involves revenue, expenses, or drawing.
3. Write the account totals from the left side of the equals sign and add them.
Write the account totals from the right side of the equals sign and add them.
If the two totals are not equal, first check the addition and subtraction. If you still cannot find the error, reanalyze each transaction.

Transcribed Image Text:

Assets Cash + Supplies + Ppd. + = Liabilities + Ins. Accounts Payable Capital Owner's Equity + Revenue Expenses