Chapter 3, Problem 7SEA

### College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

Chapter
Section

### College Accounting, Chapters 1-27

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

# ANALYSIS OF TRANSACTIONS Charles Chadwick opened a business called Charlie’s Detective Service in January 20--. Set up T accounts for the following accounts: Cash; Accounts Receivable; Office Supplies; Computer Equipment; Office Furniture; Accounts Payable; Charles Chadwick, Capital; Charles Chadwick, Drawing; Professional Fees; Rent Expense; and Utilities Expense.The following transactions occurred during the first month of business. Record these transactions in T accounts. After all transactions are recorded, foot and balance the accounts if necessary. (a) Invested cash in the business, \$30,000. (b) Bought office supplies for cash, \$300. (c) Bought office furniture for cash, \$5,000. (d) Purchased computer and printer on account, \$8,000. (e) Received cash from clients for services, \$3,000. (f) Paid cash on account for computer and printer purchased in transaction (d), \$4,000. (g) Earned professional fees on account during the month, \$9,000. (h) Paid cash for office rent for January, \$ 1,500. (i) Paid utility bills for the month, \$800. (j) Received cash from clients billed in transaction (g), \$6,000. (k) Withdrew cash for personal use, \$3,000.

To determine

Record the given transactions in T accounts and foot the balance of T accounts.

Explanation

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

T-account: The condensed form of a ledger is referred to as T-account...

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