BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting (Book Only): A ...

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

S. Myers, a speech therapist, opened a clinic in the name of Myers Clinic. Her accountant prepared the following chart of accounts:

images

The following transactions occurred during June of this year:

  1. a. Myers deposited $40,000 in a bank account in the name of the business.
  2. b. Bought waiting room chairs and tables on account, $1,330.
  3. 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.
  4. d. Bought an intercom system on account from Regan Office Supply, $375.
  5. e. Received and paid the telephone bill, $155, Ck. No. 1002.
  6. f. Sold professional services on account, $1,484.
  7. g. Received and paid the electric bill, $190, Ck. No. 1003.
  8. h. Received and paid the bill for the state speech therapy convention, $450, Ck. No. 1004.
  9. i. Sold professional services for cash, $2,575.
  10. j. Paid on account to Regan Office Supply, $300, Ck. No. 1005.
  11. k. Paid the rent for the current month, $940, Ck. No. 1006.
  12. l. Paid salary of the receptionist, $880, Ck. No. 1007.
  13. m. Myers withdrew cash for personal use, $800, Ck. No. 1008.
  14. n. Received $885 on account from patients who were previously billed.

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 as of June 30, 20--.
  6. 6. Prepare an income statement for June 30, 20--.
  7. 7. Prepare a statement of owner’s equity for June 30, 20--.
  8. 8. Prepare a balance sheet as of 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 co...

2, 3 & 4

To determine

Correctly place the plus and minus signs for each T-account and label the debit and credit sides of the accounts, Record the transactions in the T-accounts and write the letter of each entry to identify the transaction and show the balances.

5.

To determine

Prepare a trial balance as of June 30.

6.

To determine

Prepare an income statement for June 30.

7.

To determine

Prepare a statement of owners’ equity for June 30.

8.

To determine

Prepare a balance sheet as of June 30.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

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

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

What does the invisible hand of the marketplace do?

Principles of Microeconomics (MindTap Course List)

IRR AND NPV A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: Th...

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