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College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

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BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

T ACCOUNTS AND TRIAL BALANCE Wilhelm Kohl started a business in May 20-- called Kohl’s Home Repair. Kohl hired a part-rime college student as an assistant. Kohl has decided to use the following accounts for recording transactions:

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The following transactions occurred during May:

  1. (a) Invested cash in the business, $25,000.
  2. (b) Purchased a used van for cash, $6,000.
  3. (c) Purchased equipment on account, $4,000.
  4. (d) Received cash for services rendered, $7,500.
  5. (e) Paid cash on account owed from transaction (c), $2,300.
  6. (f) Paid rent for the month, $850.
  7. (g) Paid phone bill, $230.
  8. (h) Earned revenue on account, $4,500.
  9. (i) Purchased office supplies for cash, $160.
  10. (j) Paid wages to an assistant, $800.
  11. (k) Purchased a one-year insurance policy, $1,100.
  12. (l) Received cash from services performed in transaction (h), $3,400).
  13. (m) Paid cash for gas and oil expense on the van, $155.
  14. (n) Purchased additional equipment for $4,200, paying $1,500 cash and spreading the remaining payments over the next 10 months.
  15. (o) Earned service fees for the remainder of the month of $3,500: $1,900 in cash and $1,600 on account.
  16. (p) Withdrew cash at the end of the month, $2,900.

REQUIRED

  1. 1. Enter the transactions in T accounts, identifying each transaction with its corresponding letter.
  2. 2. Foot and balance the accounts where necessary.
  3. 3. Prepare a trial balance as of May 31, 20--.

1 and 2.

To determine

Enter the transactions in T accounts and identify each transaction with its corresponding letter and foot the balance of T accounts.

Explanation

Analysis of transactions: A transaction refers to any business event that affects assets, liabilities and stockholders’ equity or owner’s equity which can be measured in monetary terms.

T-account: The condensed form of a ledger is referred to as T-account. The left-hand side of this account is known as debit, and the right hand side is known as credit...

3.

To determine

Prepare a trial balance as of May 31, 20--.

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