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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

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BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

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

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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--.

1.

To determine

Record the owners’ name in the capital and drawing T-accounts.

Explanation

T-account:

T-account is the form of the ledger account, where the journal entries are posted to this account. It is referred to as the T-account, because the alignment of the components of the accoun...

2, 3 & 4

To determine

Place the plus and minus signs for each T-account and label the debit and credit sides of the accounts, record the transactions in T-accounts and show the balance of the T-accounts.

5.

To determine

Prepare a trial balance, with a three-line heading dated November 30.

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