Learning Objectives

Analyze common business transactions for a sole proprietorship service firm and enter them into t$-$accounts

Determine the proper balance of the $t$ account.

Prepare a trial balance using the t$-$accounts.

Analyze the results of the business and comment on some common ratios.

Prepare a set of financial statements for a sole proprietorship who is engaged in a service oriented business

Create a Chart

Problem Data

Analyze each transaction below.

TRANSACTIONS $-$ The following transactions happened during January, the first month of a brand new business.

On the first day of January, the owner, Ms$.$ Sheila Mane, invested $$50,000$ cash in the name of the business. $-$ The Mane Event. This company performs cosmetology services for a client base.

Prepaid the rent for the next three months in the amount of $$6,000.$

Purchased office supplies for $$3,000$ in cash.

Purchased Equipment $$20,000$ for the Salon paying $$5,000$ down and the remainder on account..

Collected fee income $-$ cash$-$ of $$26,000$ for the first part of the month.

Paid the current month's utilities expense of $$2,500.$

Had a bridal party in for up do's and nail services. Billed the bride's mother for services totaling $$3,000$ to be paid next month.

Paid employee's wages of $$4,600.$

Paid telephone bill of $$580.$

Purchased more supplies of $$1,100$ on account.

Paid $$25\mathrm{.}00$ to the Donut Nut to provide refreshments to the employees to celebrate the first successful month of business.

Collected $$1,000$ from the bride's mother who was previously billed.

Clients paid a total of $$9,100$ cash in fees for the second half of the month.

The owner $($Sheila Mane$)$ took a cash withdrawal of $$6,500.$

Help with making a chart as well thank you.