Principles of Acct I ACCT1010 Chapter 1 Exercise 2 Mary Smith opened an architectural firm called Creative Architecture and recorded the following transactions. Use the Accounting Equation grid to record the following transactions and T-accounts. Include your fee. Prepare financial statements for a bonus. July 1 Invested $15,000 in the business. July 1 Paid $4,000 for July rent. July 3 Paid $400 for July?s janitorial services July 3 Bought office supplies for $870 using a company credit card which is recorded as Accounts Payable. July 5 Bought 2 computers and printers on account for $2,500. July 6 Paid a Certified Public Accountant $200 to balance the books. July 6 Signed up for a monthly internet connection to the computers & immediately paid $25 for July. July 9 Completed plans for a home & quickly collected $6,000 architectural fee. July 12 Completed plans for a commercial building but did not immediately collect the fee of $15,000 due to financing problems with the builder. July 14 Purchased stamps at the U. S. Post Office for $250 using a credit card. July 16 Charged on account an advertisement announcing the opening of the architectural firm at the Commercial Appeal, $175. July 17 Completed plans for a home, and the builder, Angel Builders, asked for a month?s extension to pay the bill $2,500. July 22 Collected the fee of July 12 as the complications have been resolved. July 23 Paid the month?s telephone bill, $250. July 24 Paid the month?s utility bill of $450. July 31 Mary withdrew $2,500 of business cash for personal use. July 31 Paid $2,400 to a secretary-receptionist.

Accounting Principles 1010 or 1020 THIS ACCOUNT IS CURRENTLY RUNNING BALANCE DATE ACCOUNT BALANCED 0.00 DEBIT ( + ) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Page 1 of 1 CREDIT ( - ) BALANCE January 2015 Professor Cynthia Elliott, CPA Southwest Tennessee Community College 5983 Macon Cove Memphis, TN 38134 Dear Professor E: I am pleased to announce the completion of .... I have made significant growth..... I am really proud of this project... There has never been a better time to receive such a grand project....and I am looking forward to obtaining a high grade. Also, I want to thank..... (titles and/or references ONLY). Here are a few things I have learned from this project... To... To... To... Thank you for your support and confidence in me. Name Lead Accountant Cash Assets Total Assets Liabilities Total liabilities Owner's Equity Total Liabilities and Owner's Equity Revenue: Expense: Total Expense Net Income Owner's Capital, Beginning Less: Increase/(Decrease) in owner's equity Owner's capital, ending Assets Total Assets Liabilities Total liabilities Owner's Equity Total Liabilities and Owner's Equity Revenue: Expense: Total Expense Net Income Owner's Capital, Beginning Less: Increase/(Decrease) in owner's equity Owner's capital, ending