"Using T accounts to record all business transactions."

3.4A. The following accounts and transactions are for Horace Brock, Landscape Consultant. Analyze the transactions. Record each in the appropriate T accounts. Use plus and minus signs in front of the amounts to show the increases and decreases. Identify each entry in the T accounts. By writing the letter of the transaction next to the entry.

Assets: Cash, Accounts Receivable, Office Furniture, Office Equipment

Liabilities: Accounts Payable

Owners Equity: Horace Brock Capital, Horace Brock Drawing

Revenue: Fees Income

Expenses: Rent Expense, Utilities Expense, Salaries Expense, Telephone Expense, Miscellaneous Expense

Transactions:

1. Brock invested $160,000 in cash to start the business
2. Paid $6,000 for the current months rent.
3. Bought office furniture for $16,720.
4. Performed services for $8,200 in cash.
5. Paid $1,250 for the monthly telephone bill.
6. Performed services for $14,000 on credit.
7. Purchased a computer and copier for $38,000, paid $13,000 in cash immediately with the balance due in 30 days.
8. Received $7,000 from credit clients.
1. Paid $4,000 in cash for office cleaning services for the month.
10. Purchased additional office chairs for $5,800; received credit terms of 30 days.
11. Purchased office equipment for $40,000 and paid half of this amount in cash immediately; the balance is due in 30 days.
50. Issued a check for $9,400 to pay salaries.
1000. Performed services for $14,500 in cash.
14. Performed services for $16,000 on credit.
15. Collected $8,000 on accounts receivable from charge customers.
16. Issued a check for $2,900 in partial payment of the amount owed for office chairs.
17. Paid $700 to a duplicating company for photocopy work performed during the month.
18. Paid $1,220 for the monthly electric bill.
19. Brock withdrew $9,000 in cash for personal expenses.

Analyze: What liabilities does the business have after all transactions have been recorded?