close solutoin list

Entries into T accounts and trial balance Kimberly Manis, an architect, organized Manis Architects on January 1, 2016. During the month, Manis Architects completed the following transactions: a. Issued common stock to Kimberly Manis in exchange for $ 15,000. b. Paid January rent for office and workroom, $1,950. c. Purchased used automobile for $28,500, paying $5,700 cash and giving a note payable for the remainder. d. Purchased office and computer equipment on account, $4,500. e. Paid cash for supplies, $1,875. f. Paid cash for annual insurance policies, $3,600. g. Received cash from client for plans delivered, $13,650. h. Paid cash for miscellaneous expenses, $2,600. i. Paid cash to creditors on account, $3,000. j. Paid installment due on note payable, $950. k. Received invoice for blueprint service, due in February, $3,750. l. Recorded fees earned on plans delivered, payment to be received in February, $21,900. m. Paid salary of assistants. $4,100. n. Paid gas, oil, and repairs on automobile for January, $1,300. Instructions 1. Record these transactions directly in the following T accounts, without journalizing: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Automobiles, Equipment, Notes Payable, Accounts Payable, Common Stock, 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 Manis Architects as of January 31, 2016. 4. Determine the net income or net loss for January.

BuyFind

Financial & Managerial Accounting

13th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285866307
BuyFind

Financial & Managerial Accounting

13th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285866307

Solutions

Chapter
Section
Chapter 2, Problem 2.1APR
Textbook Problem

Entries into T accounts and trial balance

Kimberly Manis, an architect, organized Manis Architects on January 1, 2016. During the month, Manis Architects completed the following transactions:

  • a. Issued common stock to Kimberly Manis in exchange for $ 15,000.
  • b. Paid January rent for office and workroom, $1,950.
  • c. Purchased used automobile for $28,500, paying $5,700 cash and giving a note payable for the remainder.
  • d. Purchased office and computer equipment on account, $4,500.
  • e. Paid cash for supplies, $1,875.
  • f. Paid cash for annual insurance policies, $3,600.
  • g. Received cash from client for plans delivered, $13,650.
  • h. Paid cash for miscellaneous expenses, $2,600.
  • i. Paid cash to creditors on account, $3,000.
  • j. Paid installment due on note payable, $950.
  • k. Received invoice for blueprint service, due in February, $3,750.
  • l. Recorded fees earned on plans delivered, payment to be received in February, $21,900.
  • m. Paid salary of assistants. $4,100.
  • n. Paid gas, oil, and repairs on automobile for January, $1,300.

Instructions

    1. 1. Record these transactions directly in the following T accounts, without journalizing: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Automobiles, Equipment, Notes Payable, Accounts Payable, Common Stock, 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. 2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.
    3. 3. Prepare an unadjusted trial balance for Manis Architects as of January 31, 2016.
    4. 4. Determine the net income or net loss for January.

Expert Solution

(1) and (2)

To determine

T-account:

An account is referred to as a T-account, because the alignment of the components of the account resembles the capital letter ‘T’. An account consists of the three main components which are as follows:

  • The title of the account
  • The left or debit side
  • The right or credit side

Unadjusted trial balance:

The unadjusted trial balance is the summary of all the ledger accounts that appears on the ledger accounts before making adjusting journal entries.

To record: The transactions directly in their respective T-accounts, and to determine their balances.

Explanation of Solution

Record the transactions directly in their respective T-accounts, and determine their balances.

Cash
(a)   18,000 (b)   1,950
(g)   13,650 (c)   5,700
      (e)   1,875
      (f)   3,600
      (h)   2,600
      (i)   3,000
      (j)   950
      (m)   4,100
      (n)   1,300
  Balance 9,025      
Accounts Receivable
(l)   21,900      
           
Supplies
(e)   1,875      
Prepaid Insurance
(f)   3,600      
Automobiles
(c)   28,500      
Equipment
(d)   4,500      
Expert Solution

3.

To determine

To prepare: An unadjusted trial balance for M, Architect, as of January 31, 2016.

Expert Solution

4.

To determine
The net income or net loss of M, Architect for the month of January.

Want to see this answer and more?

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

See solution

Chapter 2 Solutions

Financial & Managerial Accounting
Show all chapter solutions
Ch. 2 - A Rules of debit and credit and normal balances...Ch. 2 - Rules of debit and credit and normal balances...Ch. 2 - Journal entry for asset purchase Prepare a journal...Ch. 2 - Journal entry for asset purchase Prepare a journal...Ch. 2 - Journal entry for fees earned Prepare a journal...Ch. 2 - Journal entry for fees earned Prepare a journal...Ch. 2 - Journal entry for dividends Prepare a journal...Ch. 2 - Journal entry for dividends Prepare a journal...Ch. 2 - Missing amount from an account On July 1, the cash...Ch. 2 - Missing amount from an account On August 1, the...Ch. 2 - Trial balance errors For each of the following...Ch. 2 - Trial balance errors For each of the following...Ch. 2 - Correcting entries The following errors took place...Ch. 2 - Correcting entries The following errors took place...Ch. 2 - Horizontal analysis Two income statements for...Ch. 2 - Horizontal analysis Two income statements for...Ch. 2 - Chart of accounts The following accounts appeared...Ch. 2 - Chart of accounts Innerscape Interiors is owned...Ch. 2 - Chart of accounts LeadCo School is a newly...Ch. 2 - Rules of debit and credit The following table...Ch. 2 - Normal entries for accounts During the month,...Ch. 2 - Normal balances of accounts Identify each of the...Ch. 2 - Transactions Jardine Consulting Co. has the...Ch. 2 - Journalizing and posting On January 7, 2016,...Ch. 2 - Transactions and T accounts The following selected...Ch. 2 - Cash account balance During the month, Warwick Co....Ch. 2 - Account balances A. During February, 186,500 was...Ch. 2 - Retained earnings account balance As of January 1,...Ch. 2 - Identifying transactions Wyoming Tours Co. is a...Ch. 2 - Journal entries Based upon the T accounts in...Ch. 2 - Trial balance Based upon the data presented in...Ch. 2 - Trial balance The accounts in the ledger of...Ch. 2 - Effect of errors on trial balance Indicate which...Ch. 2 - Errors in trial balance The following preliminary...Ch. 2 - Effect of errors on trial balance The following...Ch. 2 - Errors in trial balance Identify the errors in the...Ch. 2 - Entries to correct errors The following errors...Ch. 2 - Entries to correct errors The following errors...Ch. 2 - Horizontal analysis of income statement The...Ch. 2 - Horizontal analysis of income statement The...Ch. 2 - Entries into T accounts and trial balance Kimberly...Ch. 2 - Journal entries and trial balance On August 1,...Ch. 2 - Journal entries and trial balance On November 1,...Ch. 2 - Journal entries and trial balance Elite Realty...Ch. 2 - Corrected trial balance The Colby Group has the...Ch. 2 - Entries into T accounts and trial balance Ken...Ch. 2 - Journal entries and trial balance On August 1,...Ch. 2 - Journal entries and trial balance On October 1,...Ch. 2 - Journal entries and trial balance Valley Realty...Ch. 2 - Corrected trial balance Tech Support Services has...Ch. 2 - The transactions completed by PS Music during June...Ch. 2 - Ethics and professional conduct in business Al the...Ch. 2 - Account for revenue Bozeman College requires...Ch. 2 - Record transactions The following discussion took...Ch. 2 - Transactions and income statement Cory Neece is...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
Use a production possibilities frontier to describe the idea of efficiency.

Principles of Microeconomics (MindTap Course List)

What happens when a firm makes a decision to grow from within?

Foundations of Business (MindTap Course List)

Describe marketing uses of branding

MKTG 12:STUDENT ED.-TEXT

NPV Project K costs 52,125, its expected cash inflows arc 12,000 per year for 8 years, and its WACC is 12%. Wha...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

8. How do common stock and preferred stock differ?

Cornerstones of Financial Accounting