Critical Thinking Problem 3.2 (Algo) Sole Proprietorship LO 3-1, 3-2, 3-3, 3-4, 3-5, 3-6 Brenda Jo Smith is an architect who operates her own business. The accounts and transactions for the business follow. Transactions a. Brenda Jo Smith invested $20,000 in cash to start the business. b. Paid $2,000 for advertisements in a design magazine. c. Purchased office furniture for $4,400 in cash. d. Performed services for $6,300 in cash. e. Paid $245 for the monthly telephone bill. f. Performed services for $1,700 on credit 9. Purchased a fax machine for $500; paid $75 in cash with the balance due in 30 days. h. Paid a bill for $620 from the office cleaning service. 1. Received $1.680 from clients on account. J. Purchased additional office chairs for $615, received credit terms of 30 drys k. Paid $4700 for salaries. I. Issued a check for $260 in partial payment of the amount owed for office chairs. m. Received $2.440 in cash for services performed n. Issued a check for $530 for utilities expense. o. Performed services for $2.220 on credit p. Collected $970 from clients on account 9. Brenda Jo Smith withdrew $2,570 in cash for personal expenses r. Paid $670 to Copy Quick for photocopy work performed during the month. (Hint: Include office cleaning services and photocopy expenses under "Miscellaneous Expense") Required: (1) Post the above transactions into the appropriate T accounts. (2) Determine the account balances. Prepare a trial balance, an income statement, a statement of owner's equity, and a balance sheet for Brenda Jo Smith, Architect Analyze: Using the basic accounting equation, what is the financial condition of Brenda Jo Smith's business at month-end? Complete this question by entering your answers in the tabs below. T Accounts Trial Balance Income Statement Stmt of Owners Eqty Balance Sheet Analyze j. Purchased additional office chairs for $615; received credit terms of 30 days. K. Paid $4,700 for salaries I. Issued a check for $260 in partial payment of the amount owed for office chairs. m. Received $2,440 in cash for services performed n. Issued a check for $530 for utilities expense. o. Performed services for $2,220 on credit. p. Collected $970 from clients on account. 9. Brenda Jo Smith withdrew $2,570 in cash for personal expenses. r. Paid $670 to Copy Quick for photocopy work performed during the month. (Hint: Include office cleaning services and photocopy expenses under "Miscellaneous Expense") Required: (1) Post the above transactions into the appropriate T accounts (2) Determine the account balances Prepare a trial balance, an income statement, a statement of owner's equity, and a balance sheet for Brenda Jo Smith, Architect. Analyze Using the basic accounting equation, what is the financial condition of Brenda Jo Smith's business at month-end? -S Complete this question by entering your answers in the tabs below. T Accounts Trial Balance Income Statement Stmt of Owners Egty Balance Sheet Analyze Using the basic accounting equation, what is the financial condition of Brenda Do Smith's business at month end? Assets Liabilities Owner's equity
