Connie Young, an architect, opened an office on October 1, 2019. During the month, she completed the following transactions connected with her professional practice:
a. Transferred cash from a personal bank account to an account to be used for the business, $36,000.
b. Paid October rent for office and workroom, $2,400.
c. Purchased used automobile for $32,800, paying $7,800 cash and giving a note payable for the remainder.
d. Purchased office and computer equipment on account, $9,000.
e. Paid cash for supplies, $2,150.
f. Paid cash for annual insurance policies, $4,000.
g. Received cash from client for plans delivered, $12,200.
h. Paid cash for miscellaneous expenses, $815.
i. Paid cash to creditors on account, $4,500.
j. Paid $5,000 on note payable.
k. Received invoice for blueprint service, due in November, $2,890.
l. Recorded fees earned on plans delivered, payment to be received in November, $18,300.
m. Paid salary of assistants, $6,450.
n. Paid gas, oil, and repairs on automobile for October, $1,020.
1. 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.
2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.
3. Prepare an unadjusted trial balance for Connie Young, Architect, as of October 31, 2019.
4. Determine the net income or net loss for October.
Since we only answer up to 3 sub-parts, we’ll answer the first three. Please resubmit the question and specify the other subparts (up to 3) you’d like answered.
T shape account are prepared to check the amount which the company has paid, has to receive from others, amount invested as capital and amount withdrawn as drawing.
Trial balance is prepared to check the correctness of the accounts prepared in the books. The balance of each account is posted to the debit or credit side of trial balance accordingly. The total is made for each side. If the total of debit & credit side is matched, it is assumed that account are accurate.
Cash account is prepared as follows:
Accounts receivable, supplies & prepaid in...
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