College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Chapter 2, Problem 3PA
S. Myers, a speech therapist, opened a clinic in the name of Myers Clinic. Her accountant prepared the following chart of accounts:
The following transactions occurred during June of this year:
- a. Myers deposited $40,000 in a bank account in the name of the business.
- b. Bought waiting room chairs and tables on account, $1,330.
- c. Bought a fax/copier/scanner combination from Max’s Equipment for $595, paying $200 in cash and placing the balance on account, Ck. No. 1001.
- d. Bought an intercom system on account from Regan Office Supply, $375.
- e. Received and paid the telephone bill, $155, Ck. No. 1002.
- f. Sold professional services on account, $1,484.
- g. Received and paid the electric bill, $190, Ck. No. 1003.
- h. Received and paid the bill for the state speech therapy convention, $450, Ck. No. 1004.
- i. Sold professional services for cash, $2,575.
- j. Paid on account to Regan Office Supply, $300, Ck. No. 1005.
- k. Paid the rent for the current month, $940, Ck. No. 1006.
- l. Paid salary of the receptionist, $880, Ck. No. 1007.
- m. Myers withdrew cash for personal use, $800, Ck. No. 1008.
- n. Received $885 on account from patients who were previously billed.
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 the 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 as of June 30, 20--. - 6. Prepare an income statement for June 30, 20--.
- 7. Prepare a statement of owner’s equity for June 30, 20--.
- 8. Prepare a balance sheet as of June 30, 20--.
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Chapter 2 Solutions
College Accounting (Book Only): A Career Approach
Ch. 2 - Determine the balance of the following T account:
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Ch. 2 - Explain why the term debit doesnt always mean...Ch. 2 - Prob. 3DQCh. 2 - How are the three financial statements shown in...Ch. 2 - Prob. 5DQCh. 2 - List two reasons why the debits and credits in the...Ch. 2 - Prob. 7DQCh. 2 - What do we mean when we say that capital, drawing,...Ch. 2 - On a sheet of paper, draw the fundamental...Ch. 2 - List the classification of each of the following...Ch. 2 - R. Dalberg operates Dalbergs Tours. The company...Ch. 2 - During the first month of operation, Graham...Ch. 2 - Speedy Sewing Services, owned by T. Nguyen, hired...Ch. 2 - During the first month of operations, Landish...Ch. 2 - The following errors were made in journalizing...Ch. 2 - Would the following errors cause the trial balance...Ch. 2 - During December of this year, G. Elden established...Ch. 2 - B. Kelso established Computer Wizards during...Ch. 2 - S. Myers, a speech therapist, opened a clinic in...Ch. 2 - On May 1, B. Bangle opened Self-Wash Laundry. His...Ch. 2 - The financial statements for Daniels Custom...Ch. 2 - During February of this year, H. Rose established...Ch. 2 - J. Carrie established Carries Photo Tours during...Ch. 2 - D. Johnston, a physical therapist, opened...Ch. 2 - On July 1, K. Resser opened Ressers Business...Ch. 2 - The financial statements for Baker Custom Catering...Ch. 2 - Prob. 1ACh. 2 - A fellow accounting student has difficulty...Ch. 2 - What Would You Do? A new bookkeeper cant find the...
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