The following accounts and transactions are for Horace Brock, Landscape Consultant.

INSTRUCTIONS

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

OWNER’S EQUITY

Horace Brock, Capital

Horace Brock, Drawing

REVENUE

Fees Income

EXPENSES

Rent Expense

Utilities Expense

Salaries Expense

Telephone Expense

Miscellaneous Expense

TRANSACTIONS

a. Brock invested $160,000 in cash to start the business.

b. Paid $6,000 for the current month’s rent.

c. Bought office furniture for $16,720 in cash.

d. Performed services for $8,200 in cash.

e. Paid $1,250 for the monthly telephone bill.

f. Performed services for $14,000 on credit.

g. Purchased a computer and copier for $38,000, paid $13,000 in cash immediately with the balance due in 30 days.

h. Received $7,000 from credit clients.

i. Paid $4,000 in cash for office cleaning services for the month.

j. Purchased additional office chairs for $5,800; received credit terms of 30 days.

k. Purchased office equipment for $40,000 and paid half of this amount in cash immediately; the balance is due in 30 days.

l. Issued a check for $9,400 to pay salaries.

m. Performed services for $14,500 in cash.

n. Performed services for $16,000 on credit.

o. Collected $8,000 on accounts receivable from charge customers.

p. Issued a check for $2,900 in partial payment of the amount owed for office chairs.

q. Paid $700 to a duplicating company for photocopy work performed during the month.

r. Paid $1,220 for the monthly electric bill.

s. Brock withdrew $9,000 in cash for personal expenses.

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