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The consulting firm of Martin and Associates uses the accounts listed below. On a separate sheet of paper, set up T accounts for each of
The consulting firm of Martin and Associates uses the accounts listed below. On a separate sheet of paper, set up T accounts for each of the accounts listed and record the balances as of December 1, 20X1 on the normal balance side of the accounts.
Cash | $ | 5,400 | Joan Martin, Capital | 15,700 | |
Accounts receivable | 8,400 | Joan Martin, Drawing | -0- | ||
Prepaid rent | -0- | Fees income | -0- | ||
Office equipment | 7,900 | Utilities expense | -0- | ||
Accounts payable | 6,000 | Salaries expense | -0- | ||
The firm has the following transactions during the month of December 20X1. Record the effects of these transactions in the T accounts.
- Paid $1,400 for one month's rent.
- Collected $5,200 in cash from credit customers.
- Performed services for $7,400 in cash.
- Paid $4,400 for salaries.
- Issued a check for $3,400 to a creditor.
- Performed services for $10,400 on credit.
- Purchased office equipment for $1,400 on credit.
- The owner withdrew $3,400 in cash for personal expenses.
- Issued a check for $640 to pay the monthly utility bill.
- Post the above transactions into the appropriate T accounts.
- Using the information shown, prepare a trial balance for Martin and Associates at December 31, 20X1 before any adjusting entries are made.
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