Question 1 [40 points]

Weber Inc. began operations on August 1, 2014, and showed the following account balances at August 31. Cash: $29,500; Accounts Receivable: $3,800; Supplies: $3,000; Prepaid Insurance: $4,200; Prepaid Rent: $4,700; Accounts Payable: $18,000; Share Capital: $27,600; Consulting Revenue Earned: $1,100; Advertising Expense: $1,500. The following transactions occurred during September.

a. September 2: Susan Montgomery (a shareholder), received share capital in Weber Inc., after investing $55,000 cash into the business. b. September 3: Weber Inc. provided $4,750 of consulting services for a customer who will pay within 30 days. C. September 5: Weber Inc. used $100 cash and $500 credit to purchase $600 of supplies. d. September 8: The bill for the $1,500 advertising campaign that ran last week was received today and paid. e. September 11 : Weber Inc. performed consulting services for a customer and received $100. f. September 13 : A bill was received today for last week's $500 advertising campaign. It must be paid within 15 days. g. September 16: Weber Inc. returned $100 of defective supplies today that were originally purchased for cash. h. September 17: Weber Inc. spent $700 cash on supplies. i. September 20: Weber Inc. received $1,200 towards payment for the services provided in transaction (b). j. September 21 : Weber Inc. purchased $300 of supplies on credit. Enter each account balance as of August 31 in the appropriate T-account, and then record the transactions by entering the debit and credit entries directly in the T-accounts. Use the date for each transaction to identify the entries, placing the date in the left-hand cell and the amount in the right-hand cell of the appropriate side of the T-account. Then determine the balance of each account, and write 'Balance' (or 'Bal) next to it, in the left-hand cell on the appropriate side. Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Accounts Payable Share Capital Consulting Revenue Earned Advertising Expense