College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Textbook Question
Chapter 3, Problem 13SPB
T ACCOUNTS AND
The following transacrions occurred during August:
- (a) Invested cash in the business, $30,000.
- (b) Purchased a used van for cash, $8,000.
- (c) Purchased plumbing equipment on account, $4,000.
- (d) Received cash for services rendered, $3,000.
- (e) Paid cash on account owed from transaction (c), $1,000.
- (f) Paid rent for the month, $700.
- (g) Paid phone bill, $100.
- (h) Earned revenue on account, $4,000.
- (i) Purchased office supplies for cash, $300.
- (j) Paid wages to student, $500.
- (k) Purchased a one-year insurance policy, $800.
- (l) Received cash from services performed in transaction (h), $3,000.
- (m) Paid cash for advertising expense, $2,000.
- (n) Purchased additional plumbing equipment for $2,000, paying $500 cash and spreading the remaining payments over the next six months.
- (o) Earned revenue from services for the remainder of the month of $2,800: $1,100 in cash and $1,700 on account.
- (p) Withdrew cash at the end of the month, $3,000.
REQUIRED
- 1. Enter the transactions in T accounts, identifying each transaction with its responding letter.
- 2. Foot and balance the accounts where necessary.
- 3. Prepare a trial balance as of August 31, 20--.
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Chapter 3 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 3 - LO3 To debit an account is to enter an amount on...Ch. 3 - Liability accounts normally have debit balances.Ch. 3 - LO3 Increases in owners equity are entered as...Ch. 3 - Prob. 4TFCh. 3 - LO3 To credit an account is to enter an amount on...Ch. 3 - LO3 A debit to an asset account will decrease it.Ch. 3 - A common example of an asset is (a) Professional...Ch. 3 - The accounting equation may be expressed as (a)...Ch. 3 - LO3 Liability, owners equity, and revenue accounts...Ch. 3 - LO4 To record the payment of rent expense, an...
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