THE SMITH COMPANY

Using the business transactions below, complete t-accounts for the Smith Company. I have provided

a blank sheet of t-accounts as an attachment to this assignment. The company started business on

June 1, 2019.

a. John Smith, owner, invested $120,000 cash in the company.

b. The company purchased $10,000 of office equipment on credit.

c. The company billed a customer $2,000 as fees for services provided.

d. The company paid $1,000 cash for the monthly rent.

e. The company purchased office supplies for $500 cash.

f. The company paid $300 for the utilities for the month.

g. The company received $15,000 cash as fees for services provided to a customer.

h. The company paid the secretarys salary for the month, $3,000.

i. John Smith withdrew $6,000 cash from the company for personal use.

As you work this problem, be sure to label entries with the appropriate letter associated with the

transaction. Also, be sure to compute the t-account balances when all transactions have been posted

to the t-accounts. And finally, prepare a trial balance. Use the Chart of Accounts provided for

account names.

CHART OF ACCOUNTS

ASSETS

Cash

Accounts Receivable

Office Supplies

Office Equipment

LIABILITIES

Accounts Payable

EQUITY

J. Smith, Capital

J. Smith, Drawing

REVENUES

Service Fees Earned

EXPENSES

Rent Expense

Utilities Expense

Salary Expense

Miscellaneous Expense