College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
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Textbook Question
Chapter 2, Problem 3PA
S. Myers, a speech therapist, opened a clinic in the name of Myers Clinic. Her accountant prepared the following chart of accounts:
The following transactions occurred during June of this year:
- a. Myers deposited $40,000 in a bank account in the name of the business.
- b. Bought waiting room chairs and tables on account, $1,330.
- c. Bought a fax/copier/scanner combination from Max’s Equipment for $595, paying $200 in cash and placing the balance on account, Ck. No. 1001.
- d. Bought an intercom system on account from Regan Office Supply, $375.
- e. Received and paid the telephone bill, $155, Ck. No. 1002.
- f. Sold professional services on account, $1,484.
- g. Received and paid the electric bill, $190, Ck. No. 1003.
- h. Received and paid the bill for the state speech therapy convention, $450, Ck. No. 1004.
- i. Sold professional services for cash, $2,575.
- j. Paid on account to Regan Office Supply, $300, Ck. No. 1005.
- k. Paid the rent for the current month, $940, Ck. No. 1006.
- l. Paid salary of the receptionist, $880, Ck. No. 1007.
- m. Myers withdrew cash for personal use, $800, Ck. No. 1008.
- n. Received $885 on account from patients who were previously billed.
Required
- 1. Record the owner’s name in the Capital and Drawing T accounts.
- 2. Correctly place the plus and minus signs for each T account and label the debit and credit sides of the accounts.
- 3. Record the transactions in the T accounts. Write the letter of each entry to identify the transaction.
- 4. Foot the T accounts and show the balances.
- 5. Prepare a
trial balance as of June 30, 20--. - 6. Prepare an income statement for June 30, 20--.
- 7. Prepare a statement of owner’s equity for June 30, 20--.
- 8. Prepare a balance sheet as of June 30, 20--.
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Chapter 2 Solutions
College Accounting (Book Only): A Career Approach
Ch. 2 - Determine the balance of the following T account:
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