Leila Durkin, an architect, opened an office on July 1, 2014. During the month, she completed the following transactions connected with her professional practice:

Issued capital stock to Leila Durkin in exchange for $38,600.

Paid July rent for office and workroom, $3,900.

Purchased used automobile for $25,000, paying $5,800 cash and giving a note payable for the remainder.

Purchased office and computer equipment on account, $7,700.

Paid cash for supplies, $1,850.

Paid cash for annual insurance policies on automobile and equipment, $2,600.

Received cash from a client for plans delivered, $9,700.

Paid cash for miscellaneous expenses, $1,040.

Paid cash to creditors on account, $2,240.

Paid installment due on note payable, $310.

Received invoice for blueprint service, due in August, $1,300.

Recorded fee earned on plans delivered, payment to be received in August, $6,700.

Paid salary of assistant, $2,000.

Paid gas, oil, and repairs on automobile for July, $500.

Required:

1. Record the above transactions (in chronological order) directly in the following T accounts, without journalizing. Cash, Accounts Receivable, Supplies, Prepaid Insurance, Automobiles, Equipment, Notes Payable, Accounts Payable, Capital Stock, 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 the balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.

Cash
Selecta.b.c.d.e.f.i.j.k.n.Correct 1 of Item 1		Selecta.b.d.g.k.l.Correct 3 of Item 1
Selectc.d.e.f.g.h.k.l.n.Correct 5 of Item 1		Selecta.c.d.g.k.l.Correct 7 of Item 1
		Selecta.d.e.g.k.l.Correct 9 of Item 1
		Selecta.d.f.g.k.l.Correct 11 of Item 1
		Selecta.d.g.h.k.l.Correct 13 of Item 1
		Selecta.d.g.i.k.l.Correct 15 of Item 1
		Selecta.d.g.j.k.l.Correct 17 of Item 1
		Selecta.d.g.k.l.m.Correct 19 of Item 1
		Selecta.d.g.k.l.n.Correct 21 of Item 1
Bal.

Accounts Receivable
Selecta.b.c.d.e.f.g.h.i.j.k.l.m.n.Correct 24 of Item 1

Supplies
Selecta.b.c.d.e.f.g.h.i.j.k.l.m.n.Correct 26 of Item 1

Prepaid Insurance
Selecta.b.c.d.e.f.g.h.i.j.k.l.m.n.Correct 28 of Item 1

Automobiles
Selecta.b.c.d.e.f.g.h.i.j.k.l.m.n.Correct 30 of Item 1

Equipment
Selecta.b.c.d.e.f.g.h.i.j.k.l.m.n.Correct 32 of Item 1

Notes Payable
Selecta.b.c.d.e.f.g.h.i.j.k.l.m.n.Correct 34 of Item 1		Selecta.b.c.d.e.f.g.h.i.j.k.l.m.n.Correct 36 of Item 1
		Bal.

Accounts Payable
Selecta.b.c.d.e.f.g.h.i.j.k.l.m.n.Correct 39 of Item 1		Selecta.b.c.d.e.f.g.h.i.j.m.n.Correct 41 of Item 1
		Selecta.b.c.e.f.g.h.i.j.k.l.m.n.Correct 43 of Item 1
		Bal.

Capital Stock
		Selecta.b.c.d.e.f.g.h.i.j.k.l.m.n.Correct 46 of Item 1

Professional Fees
		Selecta.b.c.d.e.f.g.h.i.j.k.n.Correct 48 of Item 1
		Selecta.b.c.d.e.h.i.j.k.l.m.n.Correct 50 of Item 1
		Bal.

Rent Expense
Selecta.b.c.d.e.f.g.h.i.j.k.l.m.n.Correct 53 of Item 1

Salary Expense
Selecta.b.c.d.e.f.g.h.i.j.k.l.m.n.Correct 55 of Item 1

Blueprint Expense
Selecta.b.c.d.e.f.g.h.i.j.k.l.m.n.Correct 57 of Item 1

Automobile Expense
Selecta.b.c.d.e.f.g.h.i.j.k.l.m.n.Correct 59 of Item 1

Miscellaneous Expense
Selecta.b.c.d.e.f.g.h.i.j.k.l.m.n.Correct 61 of Item 1

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3. Prepare an unadjusted trial balance for Leila Durkin, Architect, as of July 31, 2014. List all accounts in the order of Assets, Liabilities, Stockholders equity, Revenues, and Expenses. For those boxes in which no entry is required, leave the box blank.

Leila Durkin, Architect
Unadjusted Trial Balance
July 31, 2014
		Debit Balances		Credit Balances

4. Determine the net income or net loss for July. SelectNet incomeNet lossCorrect 1 of Item 3 $