Connie Young, an architect, opened an office on October 1, 2019. During the month, she completed the following transactions connected with her professional practice: 1. Transferred cash from a personal bank account to an account to be used for the business, $36,000. 2. Paid October rent for office and workroom, $2,400. 3. Purchased used automobile for $32,800, paying $7,800 cash and giving a note payable for the remainder. 4. Purchased office and computer equipment on account, $9,000. 5. Paid cash for supplies, $2,150. 6. Paid cash for annual insurance policies, $4,000. 7. Received cash from client for plans delivered, $12,200. 8. Paid cash for miscellaneous expenses, $815. 9. Paid cash to creditors on account, $4,500. 10.Paid $5,000 on note payable. 11.Received invoice for blueprint service, due in November, $2,890. 12.Recorded fees earned on plans delivered, payment to be received in November, $18,300. 13.Paid salary of assistants, $6,450. 14.Paid gas, oil, and repairs on automobile for October, $1,020. Instructions 2. Record these transactions directly in the following T accounts, without journalizing: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Accounts Payable; Notes Payable; Connie Young, Capital; Professional Fees; Salary Expense; Blueprint Expense; Rent Expense; Automobile Expense; Miscellaneous Expense. To the left of the amount entered in the accounts, place the appropriate letter to identify the transaction. 3. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance. 4. Prepare an unadjusted trial balance for Connie Young, Architect, as of October 31, 2019. Answer Check Figure: Total of Debit column: $93,890 5. Determine the net income or net loss for October.
Connie Young, an architect, opened an office on October 1, 2019. During the month, she completed the following transactions connected with her professional practice: 1. Transferred cash from a personal bank account to an account to be used for the business, $36,000. 2. Paid October rent for office and workroom, $2,400. 3. Purchased used automobile for $32,800, paying $7,800 cash and giving a note payable for the remainder. 4. Purchased office and computer equipment on account, $9,000. 5. Paid cash for supplies, $2,150. 6. Paid cash for annual insurance policies, $4,000. 7. Received cash from client for plans delivered, $12,200. 8. Paid cash for miscellaneous expenses, $815. 9. Paid cash to creditors on account, $4,500. 10.Paid $5,000 on note payable. 11.Received invoice for blueprint service, due in November, $2,890. 12.Recorded fees earned on plans delivered, payment to be received in November, $18,300. 13.Paid salary of assistants, $6,450. 14.Paid gas, oil, and repairs on automobile for October, $1,020. Instructions 2. Record these transactions directly in the following T accounts, without journalizing: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Accounts Payable; Notes Payable; Connie Young, Capital; Professional Fees; Salary Expense; Blueprint Expense; Rent Expense; Automobile Expense; Miscellaneous Expense. To the left of the amount entered in the accounts, place the appropriate letter to identify the transaction. 3. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance. 4. Prepare an unadjusted trial balance for Connie Young, Architect, as of October 31, 2019. Answer Check Figure: Total of Debit column: $93,890 5. Determine the net income or net loss for October.
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 32P
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Question
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Answer the questions under "Instructions" by using the information and transactions given.
Transcribed Image Text:Connie Young, an architect, opened an office on October 1, 2019. During the
month, she completed the following transactions connected with her
professional practice:
1. Transferred cash from a personal bank account to an account to be used for the
business, $36,000.
2. Paid October rent for office and workroom, $2,400.
3. Purchased used automobile for $32,800, paying $7,800 cash and giving a note
payable for the remainder.
4. Purchased office and computer equipment on account, $9,000.
5. Paid cash for supplies, $2,150.
6. Paid cash for annual insurance policies, $4,000.
7. Received cash from client for plans delivered, $12,200.
8. Paid cash for miscellaneous expenses, $815.
9. Paid cash to creditors on account, $4,500.
10.Paid $5,000 on note payable.
11.Received invoice for blueprint service, due in November, $2,890.
12.Recorded fees earned on plans delivered, payment to be received in November,
$18,300.
13.Paid salary of assistants, $6,450.
14.Paid gas, oil, and repairs on automobile for October, $1,020.
Instructions
2. Record these transactions directly in the following T accounts, without
journalizing: Cash; Accounts Receivable; Supplies; Prepaid Insurance;
Automobiles; Equipment; Accounts Payable; Notes Payable; Connie Young,
Capital; Professional Fees; Salary Expense; Blueprint Expense; Rent Expense;
Automobile Expense; Miscellaneous Expense. To the left of the amount entered in
the accounts, place the appropriate letter to identify the transaction.
3. Determine account balances of the T accounts. Accounts containing a single entry
only (such as Prepaid Insurance) do not need a balance.
4. Prepare an unadjusted trial balance for Connie Young, Architect, as of October
31, 2019.
Answer
Check Figure: Total of Debit column: $93,890
5. Determine the net income or net loss for October.
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