S. C. Long, a chiropractor, opens Long’s Chiropractic Clinic. Her P.0.1,2,3,4,5,6 accountant recommends the following chart of accounts:

The following transactions occurred during June of this year:

a. Long invested $14,000 cash in her professional practice.

b. Bought filing cabinets on account from Ladd Office Supply (Office Equip¬
ment), $326.

c. Paid cash for chairs and carpets (Office Purniture) for the waiting room, $462.

d. Bought a used photocopier for $540 from Jones Office Machines, paying $140 down; the balance is due in thirty days.

e. Received and paid telephone bill, $99.

f. Billed patients for professional services performed, $1,612.
g. Long invested in the firm her professional equipment with a fair market value of $7,200 (additional investment).
h. Paid $164 in expenses for trip to state chiropractic convention.
i. Received and paid electric bill, $91.
j. Received $690 from patients previously billed in transaction (f).
k. Paid $160 as part payment on account for the filing cabinets purchased from Ladd Office Supply.

l. Paid office rent for the month, $500.
m. Received $242 from cash patients (not recorded previously).
n. Paid salary of receptionist, $825.
o. Long withdrew cash for personal use, $1,150.
Instructions 1. Record the owner’s name in the Capital and Drawing T accounts.
2. Correctly place plus and minus signs for each T account and label the debit and credit sides of the T accounts.
3. Record the transactions in the T accounts. Key each entry to the alphabetical symbol identifying the transaction.
4. Foot the T accounts and show balances.
5. Prepare a trial balance as of June 30, 19-.
6. Prepare an income statement for June.
7. Prepare a statement of owner’s equity for June.
8. Prepare a balance sheet as of June 30, 19-.

Transcribed Image Text:

Assets Cash Accounts Receivable Office Equipment Office Furniture Professional Equipment Liabilities Accounts Payable Owner's Equity S. C. Long, Capital S. C. Long, Drawing Revenue Professional Fees Expenses Salary Expense Rent Expense Utilities Expense Miscellaneous Expense