Question

	January 2018 Transactions
1	Adele Applegate invested $30,000 in cash to start the business.
2	Adele paid $2,000 for advertisements in a design magazine.
3	Adele purchased office furniture for $4,000 in cash.
4	Adele performed services for $4,200 in cash.
5	Adele paid $375 for the monthly telephone bill.
6	Adele performed services for $2,610 on credit.
7	Adele purchased a fax machine for $575 and paid $175 in cash with the balance due in 30 days.
8	Adele paid a bill for $650 from the office cleaning service.
9	Adele received $2,610 from clients on account.
10	Adele purchased additional office chairs for $1,080 and received credit terms of 30 days.
11	Adele paid $4,000 for salaries.
12	Adele issued a check for $540 in partial payment of the amount owed for office chairs.
13	Adele received $2,800 in cash for services performed.
14	Adele issued a check for $560 for utilities expense.
15	Adele performed services for $4,200 on credit.
16	Adele collected $1,200 from clients on account.
17	Adele withdrew $3,500 in cash for personal expenses.
18	Adele paid $600 to Vision’s Photocopy Service for photocopy work performed during the month.

CREATE T ACCOUNTS

Answer 1

T-accounts are as prepared below:

Cash
Particulars	Amount	Particulars	Amount
1	30,000	2	2,000
4	4,200	3	4,000
9	2,610	5	375
13	2,800	7	175
16	1,200	8	650
		11	4,000
		12	540
		14	560
		17	3,500
		18	600
	40,810		16,400
Ending balance	24,410
Advertising expense
Particulars	Amount	Particulars	Amount
2	2,000
	2,000		0
Ending balance	2,000
Office Furniture
Particulars	Amount	Particulars	Amount
3	4,000
10	1,080
	5,080		0
Ending balance	5,080
Telephone Expense
Particulars	Amount	Particulars	Amount
5	375
	375		0
Ending balance	375
Account Receivable
Particulars	Amount	Particulars	Amount
6	2,610	9	2,610
15	4,200	16	1,200
	6,810		3,810
Ending balance	3,000
Fax machine
Particulars	Amount	Particulars	Amount
7	575
	575		0
Ending balance	575
Office Cleaning expense
Particulars	Amount	Particulars	Amount
8	650
	650		0
Ending balance	650
Salaries Expense
Particulars	Amount	Particulars	Amount
11	4,000
	4,000		0
Ending balance	4,000
Utilities expense
Particulars	Amount	Particulars	Amount
14	560
	560		0
Ending balance	560
Addele Drawing
Particulars	Amount	Particulars	Amount
17	3,500
	3,500		0
Ending balance	3,500
Photocopy Expense
Particulars	Amount	Particulars	Amount
18	600
	600		0
Ending balance	600

Adele Applegate's Capital
Particulars	Amount	Particulars	Amount
		1	30,000
			30,000
		Ending balance	30,000
Service Revenue
Particulars	Amount	Particulars	Amount
		4	4,200
		6	2,610
		13	2,800
		15	4,200
	0		13,810
		Ending balance	13,810
Account Payable
Particulars	Amount	Particulars	Amount
12	540	7	400
		10	1,080
	540		1,480
		Ending balance	940