Analyze the transactions. Record each in the appropriate T accounts. Use plus and minus signs in front of the amounts to show the increases and decreases.
Identify each entry in the T accounts by writing the letter of the transaction next to the entry.
ASSETS		LIABILITIES		OWNER'S EQUITY		REVENUE		EXPENSES
Cash		Accounts Payable		Kathryn Price, Capital		Fees Income		Automobile Expenses
Accounts Receiveable				Kathryn Price, Drawing				Rent Expense
Office Furniture								Utilities Expense
Office Equipment								Salaries Expense
Automobile								Telephone Expense
TRANSACTIONS
A. Kathryn Price invested $120,000 in cash to start the business.
B. Paid $6,400 for the current month's rent.
C. Bought a used automobile for the firm for $36,000 in cash.
D. Performed services for $8,000 in cash.
E. Paid $16,000 for automobile repairs.
F. Performed services for $9,150 on credit.
G. Purchased office chairs for $5,600 on credit.
H. Recieved $4,500 from credit clients.
I. Paid $3,600 to reduce the amount owed from the office chairs.
J. Issued check for $1,300 to pay the monthy utility bill.
K. Purchased office equipment for $19,600 and paid half of this amount in cash immediately; the balance is due in 30 days.
L. Issued a check for $13,700 to pay salaries.