M. A. Pitts, a photographer, opened a studio for her professional P.0.1,2,3,4 practice on July 1. The account headings are presented below. Transactions com¬

pleted during the month follow.

a. Deposited $14,620 in a bank account in the name of the business, Pitts Pho¬
tographic Studio.

b. Bought photographic equipment on account from Superior Equipment, $7,121.

c. Invested personal office equipment, $5,162. (Increase the account for Office Equipment and the account of M. A. Pitts, Capital.)

d. Paid office rent for the month, $550.

e. Bought photographic supplies for cash, $796.

f. Paid premium for a two-year insurance policy on photographic equipment, $124.
g. Received $896 as professional fees for services rendered (Professional Pees).
h. Paid salary of part-time assistant, $600 (Salary Expense).
i. Received and paid bill for telephone service, $64 (Telephone Expense).
j. Paid Superior Equipment part of the amount owed on the purchase of pho¬
tographic equipment, $420.
k. Received $1,548 as professional fees for services rendered.
l. Paid for minor repairs to photographic equipment (Repair Expense), $76.
m. Pitts withdrew cash for personal use, $960.
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 account affected when the^ transaction involves revenue, expenses, or a 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.
Check Figure Right side of equals sign total $26,677

Transcribed Image Text:

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