PR 2-1B:

Ken Jones, an architect, opened an office on 1 April 2019. During the month, he completed the following transactions connected with his professional practice:

(a) Transferred cash from a personal bank account to an account to be used for the business, $18,000.

(b) Purchased used automobile for $19,500, paying $2,500 cash and giving a note payable for the remainder.

(c) Paid April rent for office and workroom, $3,150.

(d) Paid cash for supplies, $1,450.

(e) Purchased office and computer equipment on account, $6,500.

(f) Paid cash for annual insurance policies on automobile and equipment, $2,400.

(g) Received cash from a client for plans delivered, $12,000.

(h) Paid cash to creditors on account, $1,800.

(i) Paid cash for miscellaneous expenses, $375.

(j) Received invoice for blueprint service, due in May, $2,500.

(k) Recorded fees earned on plans delivered, payment to be received in May, $15,650.

(l) Paid salary of assistant, $2,800.

(m) Paid cash for miscellaneous expenses, $200.

(n) Paid $300 on note payable.

(o) Paid gas, oil, and repairs on automobile for April, $550.

Instructions:

1. Record these transactions directly in the following T accounts without journalizing: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Accounts Payable; Notes Payable; Ken Jones, Capital; Professional Fees; Rent Expense; Salary Expense; Blueprint Expense; Automobile Expense; Miscellaneous Expense.

2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.

3. Plan an unadjusted trial balance for Ken Jones, Architect, as of 30 April 2019.

4. Determine the net income or net loss for April.

PR 2-2B:

On 1 August 2019, Rafael Masey established Planet Realty, which completed the following transactions during the month:

(a) Rafael Masey transferred cash from a personal bank account to an account to be used for the business, $17,500.

(b) Purchased supplies on account, $2,300.

(c) Earned fees, receiving cash, $13,300.

(d) Paid rent on office and equipment for the month, $3,000.

(e) Paid creditor on account, $1,150.

(f) Withdrew cash for personal use, $1,800.

(g) Paid automobile expenses (including rental charge) for month, $1,500, and miscellaneous expenses, $400.

(h) Paid office salaries, $2,800.

(i) Determined that the cost of supplies used was $1,050.

Instructions:

1. Journalize entries for transactions (a) through (i), using the following account titles: Cash; Supplies; Accounts Payable; Rafael Masey, Capital; Rafael Masey, Drawing; Fees Earned; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. Journal entry explanations may be omitted.

2. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances after all posting is complete. Accounts containing only a single entry do not need a balance.

3. Plan an unadjusted trial balance as of 31 August 2019.