Question
The chart of accounts of the Barnes School is shown here, followed by the transactions that took place during October of this year. Assets 111
The chart of accounts of the Barnes School is shown here, followed by the transactions that took place during October of this year. Assets 111 Cash 113 Accounts Receivable 115 Prepaid Insurance 124 Equipment 127 Furniture Revenue 411 Tuition Income Liabilities 221 Accounts Payable Owners Equity 311 R. Barnes, Capital 312 R. Barnes, Drawing Expenses 511 Salary Expense 512 Rent Expense 513 Gas and Oil Expense 514 Advertising Expense 515 Repair Expense 516 Telephone Expense 517 Utilities Expense 529 Miscellaneous Expense
Oct 1 Bought liability insurance for one year, $ 1,850, Ck. No. 1527. 3 Received a bill for advertising from Business Summary, $ 415. 4 Paid the rent for the current month, $ 1,870, Ck. No. 1528. 7 Received a bill for equipment repair from Fix- It Service, $ 318, Inv. No. 436. Oct. 10 Received and deposited tuition from students, $ 6,375. 11 Received and paid the telephone bill $ 312, Ck. No. 1529. 15 Bought desks and chairs from The Oak Center, $ 1,980, paying $ 980 in cash and placing the balance on account, Ck. No. 1530. 18 Paid on account to Business Summary, $ 415, Ck. No. 1531. 21 R. Barnes withdrew $ 1,000 for personal use, Ck. No. 1532. 24 Received a bill for gas and oil from Wagner Oil Company, $ 225, Inv. No. 682. 25 Received and deposited tuition from students, $ 6,380. 27 Paid the salary of the part- time office assistant, $ 1,150. Ck. No. 1533. 28 Bought a photocopier on account from Gorst Office Machines, $ 1,950, Inv. No. 417. 29 Received $ 950 tuition from a student who had charged the tuition on account in September. 30 Received and paid the bill for utilities, $ 623, Ck. No. 1534. 31 Paid for flower arrangements for front office, $ 87, Ck. No. 1535. 31 R. Barnes invested his personal computer and printer, with a fair market value of $ 1,549, in the business. Required Record these transactions in the general journal, including a brief explanation for each entry. Number the journal pages 31 and 32.
Equipment increased by $3499 in October
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