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B. Kelso established Computer Wizards during November of this year. The accountant prepared the following chart of accounts: The following transactions occurred during the month: a. Kelso deposited $45,000 in a bank account in the name of the business. b. Paid the rent for the current month, $1,800, Ck. No. 2001. c. Bought office desks and filing cabinets for cash, $790, Ck. No. 2002. d. Bought a computer and printer from Cyber Center for use in the business, $2,700, paying $1,700 in cash and placing the balance on account, Ck. No. 2003. e. Bought a neon sign on account from Signage Co., $1,350. f. Kelso invested her personal computer software with a fair market value of $600 in the business. g. Received a bill from Country News for newspaper advertising, $365. h. Sold services for cash, $1,245. i. Received and paid the electric bill, $345, Ck. No. 2004. j. Paid on account to Country News, a creditor, $285, Ck. No. 2005. k. Sold services for cash, $1,450. l. Paid wages to an employee, $925, Ck. No. 2006. m. Received and paid the bill for the city business license, $75, Ck. No. 2007. n. Kelso withdrew cash for personal use, $850, Ck. No. 2008. o. Kelso withdrew cash for personal use, $850, Ck. No. 2008. 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 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, with a three-line heading, dated November 30, 20--.

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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
Publisher: South-Western College Pub
ISBN: 9781337280570
BuyFind

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
Publisher: South-Western College Pub
ISBN: 9781337280570

Solutions

Chapter
Section
Chapter 2, Problem 2PA
Textbook Problem

B. Kelso established Computer Wizards during November of this year. The accountant prepared the following chart of accounts:

Chapter 2, Problem 2PA, B. Kelso established Computer Wizards during November of this year. The accountant prepared the

The following transactions occurred during the month:

  1. a. Kelso deposited $45,000 in a bank account in the name of the business.
  2. b. Paid the rent for the current month, $1,800, Ck. No. 2001.
  3. c. Bought office desks and filing cabinets for cash, $790, Ck. No. 2002.
  4. d. Bought a computer and printer from Cyber Center for use in the business, $2,700, paying $1,700 in cash and placing the balance on account, Ck. No. 2003.
  5. e. Bought a neon sign on account from Signage Co., $1,350.
  6. f. Kelso invested her personal computer software with a fair market value of $600 in the business.
  7. g. Received a bill from Country News for newspaper advertising, $365.
  8. h. Sold services for cash, $1,245.
  9. i. Received and paid the electric bill, $345, Ck. No. 2004.
  10. j. Paid on account to Country News, a creditor, $285, Ck. No. 2005.
  11. k. Sold services for cash, $1,450.
  12. l. Paid wages to an employee, $925, Ck. No. 2006.
  13. m. Received and paid the bill for the city business license, $75, Ck. No. 2007.
  14. n. Kelso withdrew cash for personal use, $850, Ck. No. 2008.
  15. o. Kelso withdrew cash for personal use, $850, Ck. No. 2008.

Required

  1. 1. Record the owner’s name in the Capital and Drawing T accounts.
  2. 2. Correctly place the plus and minus signs for each T account and label the debit and credit sides of the accounts.
  3. 3. Record the transactions in T accounts. Write the letter of each entry to identify the transaction.
  4. 4. Foot the T accounts and show the balances.
  5. 5. Prepare a trial balance, with a three-line heading, dated November 30, 20--.

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Chapter 2 Solutions

College Accounting (Book Only): A Career Approach
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