J. Carrie established Carrie Photo Tours during June of this year. The accountant prepared the following chart of accounts:

Assets

Revenue

Cash

Computer Software

Income from Services

Office Equipment

Expenses

Neon Sign

Wages Expense Rent Expense

Liabilities

Supplies Expense

Accounts Payable

Advertising Expense Utilities Expense

Owner& Equity

J. Carrie, Capital

J. Carrie, Drawing

Miscellaneous Expense

The following transactions occurred during the month of June:

a.Carrie deposited $30,000 cash in a bank account in the name of the business.

b.Bought office equipment for cash, $1,850, Ck. No. 1001.

c.Bought computer software from Morey's Computer Center, $640, paying $350 in cash and placing the balance on account, Ck. No. 1002.

d.Paid current month's rent, $950, Ck. No. 1003 (Rent Expense).

e.Sold services for cash, $1,575 (Income from Services).

f.Bought a neon sign from The Sign Company, $1,335, paying $435 in cash and placing the balance on account, Ck. No. 1004.

g.Received bill from The Gossiper for advertising, $445 (Advertising Expense).

h.Bought supplies on account from City Supply, $460.

i.Received and paid the electric bill, $380, Ck. No. 1005.

j.Paid on account to The Gossiper, a creditor, $245, Ck. No. 1006.

k.Sold services for cash, $3,474.

Paid wages to an employee, $930, Ck. No. 1007.

m.Carrie invested his personal computer (Office Equipment) with a fair market value of $1,000 in the business.

n. Carrie withdrew cash for personal use, $800, Ck. No. 1008

o.Received and paid the bill for city business license, $75, Ck. No. 1009 (Miscellaneous Expense).

I. Record the owner's name in the Capital and Drawing T accounts.

2.Correctly place the plus and minus signs for each T account, and label the debit and credit sides of the accounts.

3.Record the transactions in the T accounts. Write the letter of each entry to identify the transaction.

4.Foot the T accounts and show the balances.

5.Prepare a trial balance, with a three-line heading, dated June 30, 20.

75

Check Figure

Cash balance, $22,750