COLLEGE ACCOUNTING W/ ACCESS >BI<
13th Edition
ISBN: 9780357531822
Author: Scott
Publisher: CENGAGE L
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Textbook Question
Chapter 2, Problem 3PB
D. Johnston, a physical therapist, opened Johnston’s Clinic. His accountant provided the following chart of accounts:
The following transactions occurred during July of this year:
- a. Johnston deposited $35,000 in a bank account in the name of the business.
- b. Bought filing cabinets on account from Muller Office Supply, $560.
- c. Paid cash for chairs and carpeting for the waiting room, $835, Ck. No. 1000.
- d. Bought a photocopier from Rob’s Office Equipment, $650, paying $250 in cash and placing the balance on account, Ck. No. 1001.
- e. Received and paid the telephone bill, which included installation charges, $185, Ck. No. 1002.
- f. Sold professional services on account, $2,255.
- g. Received and paid the bill for the state physical therapy convention, $445, Ck. No. 1003.
- h. Received and paid the electric bill, $335, Ck. No. 1004.
- i. Received cash on account from credit customers, $1,940.
- j. Paid on account to Muller Office Supply, $250, Ck. No. 1005.
- k. Paid the office rent for the current month, $1,245, Ck. No. 1006.
- l. Sold professional services for cash, $1,950.
- m. Paid the salary of the receptionist, $960, Ck. No. 1007.
- n. Johnston withdrew cash for personal use, $1,200, Ck. No. 1008.
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 July 31, 20--. - 6. Prepare an income statement for July 31, 20--.
- 7. Prepare a statement of owner’s equity for July 31, 20--.
- 8. Prepare a
balance sheet as of July 31, 20--.
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Chapter 2 Solutions
COLLEGE ACCOUNTING W/ ACCESS >BI<
Ch. 2 - Determine the balance of the following T account:
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