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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

J. Carrie established Carrie’s Photo Tours during June of this year. The accountant prepared the following chart of accounts:

images

The following transactions occurred during the month of June:

  1. a. Carrie deposited $30,000 cash in a bank account in the name of the business.
  2. b. Bought office equipment for cash, $1,850, Ck. No. 1001
  3. c. Bought computer software from Morey’s Computer Center, $640, paying $350 in cash and placing the balance on account, Ck. No. 1002.
  4. d. Paid current month’s rent, $950, Ck. No. 1003.
  5. e. Sold services for cash, $1,575.
  6. f. Bought a neon sign from The Sign Company, $1,335, paying $435 in cash and placing the balance on account, Ck. No. 1004.
  7. g. Received bill from The Gossiper for advertising, $445.
  8. h. Bought supplies on account from City Supply, $460.
  9. i. Received and paid the electric bill, $380, Ck. No. 1005.
  10. j. Paid on account to The Gossiper, $245, Ck. No. 1006.
  11. k. Sold services for cash, $3,474.
  12. l. Paid wages to an employee, $930, Ck. No. 1007.
  13. m. Carrie invested his personal computer with a fair market value of $1,000 in the business.
  14. n. Carrie withdrew cash for personal use, $800, Ck. No. 1008.
  15. o. Received and paid the bill for city business license, $75, Ck. No. 1009.

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 the 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 June 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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