Question
Marjorie Knaus, an architect, organized Knaus Architects on January 1, 2018. During the month, Knaus Architects completed the following transactions: A. Issued common stock to
Marjorie Knaus, an architect, organized Knaus Architects on January 1, 2018. During the month, Knaus Architects completed the following transactions:
A. | Issued common stock to Marjorie Knaus in exchange for $46,100. |
B. | Paid January rent for office and workroom, $4,600. |
C. | Purchased used automobile for $30,000, paying $6,900 cash and giving a note payable for the remainder. |
D. | Purchased office and computer equipment on account, $9,200. |
E. | Paid cash for supplies, $2,210. |
F. | Paid cash for annual insurance policies, $3,100. |
G. | Received cash from client for plans delivered, $11,500. |
H. | Paid cash for miscellaneous expenses, $1,250. |
I. | Paid cash to creditors on account, $2,670. |
J. | Paid installment due on note payable, $370. |
K. | Received invoice for blueprint service, due in February, $1,500. |
L. | Recorded fees earned on plans delivered, payment to be received in August, $8,000. |
M. | Paid salary of assistants, $2,400. |
N. | Paid gas, oil, and repairs on automobile for July, $600. |
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; Common Stock; 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 Knaus Architects as of January 31, 2018. |
4. | Determine the net income or net loss for January. |
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; Common Stock; 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.
Cash | |||
A. | B. | ||
G. | C. | ||
E. | |||
F. | |||
H. | |||
I. | |||
J. | |||
M. | |||
N. | |||
Bal. |
Accounts Receivable | |||
I. |
Supplies | |||
Prepaid Insurance | |||
Automobiles | |||
Equipment | |||
Notes Payable | |||
Bal. |
Accounts Payable | |||
Bal. |
Common Stock | |||
Professional Fees | |||
Bal. |
Salary Expense | |||
Blueprint Expense | |||
Rent Expense | |||
Automobile Expense | |||
Miscellaneous Expense | |||
Unadjusted Trial Balance
3. Prepare an unadjusted trial balance for Knaus Architects as of January 31, 2018.
Knaus Architects
UNADJUSTED TRIAL BALANCE
January 31, 2018
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 | Common Stock | ||
10 | Professional Fees | ||
11 | Salary Expense | ||
12 | Blueprint Expense | ||
13 | Rent Expense | ||
14 | Automobile Expense | ||
15 | Miscellaneous Expense | ||
16 | Totals |
Final Question
4. Determine the net income or net loss for January.
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