Question
Kimberly Manis, an architect, opened an office on January 1, 2016. During the month, she completed the following transactions connected with her professional practice: a.
Kimberly Manis, an architect, opened an office on January 1, 2016. During the month, she completed the following transactions connected with her professional practice:
a. | Transferred cash from a personal bank account to an account to be used for the business, $22,000. |
b. | Paid January rent for office and workroom, $1,650. |
c. | Purchased used automobile for $26,000, paying $4,800 cash and giving a note payable for the remainder. |
d. | Purchased office and computer equipment on account, $5,600. |
e. | Paid cash for supplies, $1,250. |
f. | Paid cash for annual insurance policies, $3,000. |
g. | Received cash from client for plans delivered, $13,450. |
h. | Paid cash for miscellaneous expenses, $2,300. |
i. | Paid cash to creditors on account, $3,800. |
j. | Paid installment due on note payable, $700. |
k. | Received invoice for blueprint service, due in February, $4,000. |
l. | Recorded fees earned on plans delivered, payment to be received in February, $20,600. |
m. | Paid salary of assistants, $3,500. |
n. | Paid gas, oil, and repairs on automobile for January, $1,300. |
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; Kimberly Manis, Capital; Professional Fees; Salary Expense; Blueprint Expense; Rent Expense; Automobile Expense; Miscellaneous Expense. To the left of the 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 Kimberly Manis, Architect, as of January 31, 2016. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4. | Determine the net income or net loss for January. 1. Record these transactions directly in the following T accounts, without journalizing: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Notes Payable; Accounts Payable; Kimberly Manis, Capital; Professional Fees; Salary Expense; Blueprint Expense; Rent Expense; Automobile Expense; Miscellaneous Expense. To the left of the 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.
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