On August | of the current year, Judy Kimberly started the Nu-Way Advertising Agency, and the company engaged in the following transactions during August:

Date Transactions Aug. | Judy Kimberly deposited a $9,000 personal check into the agency’s checking account 2 Nu-Way acquired land and an office building at a cost of $2,000 and $22,000, respectively. A down payment of $4,000 was made, and a one-year note was signed for the balance.

14 Nu-Way purchased several pieces of office equipment at a total cost of $1,500.

The entire amount is due September 26 Nu-Way purchased office supplies at a cost of $850 cash.

Required: (|) Prepare T-accounts for the following items: Cash, Land, Building, Office Equipment, Office Supplies, Accounts Payable, Notes Payable, and J. Kimberly, Capital.

(2) Enter the preceding transactions into the T-accounts from (1) and compute the August 31 cash balance.

(3) List the source documents normally used in recording each of the transactions.  plo45