Instructions

Ken Jones, an architect, opened an office on April 1, 2016. During the month, he completed the following transactions connected with his professional practice:

a.	Transferred cash from a personal bank account to an account to be used for the business, $18,000.
b.	Purchased used automobile for $19,500, paying $2,500 cash and giving a note payable for the remainder.
c.	Paid April rent for office and workroom, $3,150.
d.	Paid cash for supplies, $1,450.
e.	Purchased office and computer equipment on account, $6,500.
f.	Paid cash for annual insurance policies on automobile and equipment, $2,400.
g.	Received cash from a client for plans delivered, $12,000.
h.	Paid cash to creditors on account, $1,800.
i.	Paid cash for miscellaneous expenses, $375.
j.	Received invoice for blueprint service, due in May, $2,500.
k.	Recorded fees earned on plans delivered, payment to be received in May, $15,650.
l.	Paid salary of assistant, $2,800.
m.	Paid cash for miscellaneous expenses, $200.
n.	Paid installment due on note payable, $300.
o.	Paid gas, oil, and repairs on automobile for April, $550.

Required:

1.

Record these transactions directly in the following T accounts, without journalizing: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Notes Payable; Accounts Payable; Ken Jones, Capital; Professional Fees; Rent Expense; Salary Expense; Blueprint Expense; Automobile Expense; Miscellaneous Expense. To the left of each amount entered in the accounts, select the appropriate letter to identify the transaction.

2.

Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.

3.

Prepare an unadjusted trial balance for Ken Jones, Architect, as of April 30, 2016.

4.

Determine the net income or net loss for April. T Accounts

1. Record these transactions directly in the following T accounts, without journalizing: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Notes Payable; Accounts Payable; Ken Jones, Capital; Professional Fees; Rent Expense; Salary Expense; Blueprint Expense; Automobile Expense; Miscellaneous Expense. To the left of each amount entered in the accounts, select the appropriate letter to identify the transaction. 2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.

Cash
Bal.

Accounts Receivable

Supplies

Prepaid Insurance

Automobiles

Equipment

Notes Payable
		Bal.

Accounts Payable
		Bal.

Ken Jones, Capital

Professional Fees
		Bal.

Rent Expense

Salary Expense

Blueprint Expense

Automobile Expense

Miscellaneous Expense
Bal.

Unadjusted Trial Balance

3. Prepare an unadjusted trial balance for Ken Jones, Architect, as of April 30, 2016. KEN JONES, ARCHITECT

UNADJUSTED TRIAL BALANCE

April 30, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Accounts Receivable
3	Supplies
4	Prepaid Insurance
5	Automobiles
6	Equipment
7	Notes Payable
8	Accounts Payable
9	Ken Jones, Capital
10	Professional Fees
11	Rent Expense
12	Salary Expense
13	Blueprint Expense
14	Automobile Expense
15	Miscellaneous Expense
16	Totals

Final Question

4. Determine the net income or net loss for April.