In July of this year, M. Wallace established a business called Wallace Realty. The account headings are presented below. Transactions completed during the month follow. a. Wallace deposited $24,000 in a bank account in the name of the business. b. Paid the office rent for the current month, $650, Ck. No. 1000 (Rent Expense). c. Bought office supplies for cash, $375, Ck. No. 1001. d. Bought office equipment on account from Dellos Computers, $6,300. e. Received a bill from the City Crier for advertising, $455 (Advertising Expense). f. Sold services for cash, $3,944 (Service Income). g. Paid on account to Dellos Computers, $1,500, Ck. No. 1002. h. Received and paid the bill for utilities, $340, Ck. No. 1003 (Utilities Expense). i. Paid on account to the City Crier , $455, Ck. No. 1004. j. Paid truck expenses, $435, Ck. No. 1005 (Truck Maintenance Expense). k. Wallace withdrew cash for personal use, $1,500, Ck. No. 1006. Required 1. In the equation, write the owner’s name above the terms Capital and Drawing . 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses. 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.

BuyFind

College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087
BuyFind

College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087

Solutions

Chapter
Section
Chapter 1, Problem 1PB
Textbook Problem

In July of this year, M. Wallace established a business called Wallace Realty. The account headings are presented below. Transactions completed during the month follow.

Chapter 1, Problem 1PB, In July of this year, M. Wallace established a business called Wallace Realty. The account headings

  1. a. Wallace deposited $24,000 in a bank account in the name of the business.
  2. b. Paid the office rent for the current month, $650, Ck. No. 1000 (Rent Expense).
  3. c. Bought office supplies for cash, $375, Ck. No. 1001.
  4. d. Bought office equipment on account from Dellos Computers, $6,300.
  5. e. Received a bill from the City Crier for advertising, $455 (Advertising Expense).
  6. f. Sold services for cash, $3,944 (Service Income).
  7. g. Paid on account to Dellos Computers, $1,500, Ck. No. 1002.
  8. h. Received and paid the bill for utilities, $340, Ck. No. 1003 (Utilities Expense).
  9. i. Paid on account to the City Crier, $455, Ck. No. 1004.
  10. j. Paid truck expenses, $435, Ck. No. 1005 (Truck Maintenance Expense).
  11. k. Wallace withdrew cash for personal use, $1,500, Ck. No. 1006.

Required

  1. 1. In the equation, write the owner’s name above the terms Capital and Drawing.
  2. 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses.
  3. 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.

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College Accounting (Book Only): A Career Approach

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