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3) T.J. Chan, an engineering consultant, decided to begin a business of his own. Chan has set up the following chart of accounts to be
3) T.J. Chan, an engineering consultant, decided to begin a business of his own. Chan has set up the following chart of accounts to be used in his business. 101 Cash (Bank) 210 A/P-Eustace Bros. 510 Car Expense 110 A/R-M. Armata 211 A/P-Regal Oil 515 Miscellaneous Expense 111 A/R--F. Morsi 301 TJ. Chan, Capital 520 Rent Expense 120 Supplies 302 T.J. Chan, Drawings 525 Telephone Expense 125 Equipment 401 Fees Earned 530 Wages Expense 130 Automobile 505 Bank Charges a) For each of the transactions listed below, work out the changes for the transaction and record these changes in the T-accounts. After finishing the transactions, calculate and record the account balances. Transactions 1. On March 1, 2020, when TJ. began his business, he invested in the business a bank balance of $8000, an automobile worth $14 000, and equipment costing $6000, 2. Issued cheque for $465 to Royalty Trust Co. in payment of the monthly rent. 3. Issued cheque for $200 to the owner for personal use. 4. Received a bill in the amount of $900 from Eustace Bros. for office supplies purchased on account 5. Issued cheque for $350 to West End Garage as payment for repairs to the owner's personal car. 6. Issued bill to F. Morsi for services performed, $500. 7. Issued cheque for $400 to pay the office secretary's weekly wage. 8. Received an invoice for $90 from Regal Oil for gasoline and oil used in the business automobile, due in 30 days. 9. Received a memorandum stating that $50 had been deducted by the bank from the business's account to cover bank charges for the month. 10. Issued cheque for $150 to the City Telephone Company in payment of the telephone bill that arrived today. 11. Issued bill to M. Armata for services performed, $800. 12. Received $250 cash from C. Fuda to pay for services performed 13. Purchased a magazine subscription for the office for $75 paid by cheque Cash (Bank) A/R-M. Armota A/R-F. Morsi Supplies Equipment Automobile A/P-Eustace Bros A/P-Regal Oil TJ. Chan, Capital TJ. Chan, Drawings Fees Earned Bank Charges Car Expense Miscellaneous Expense Rent Expense Telephone Expense Wages Expense
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