Question

Kimberly Manis, an architect, opened an office on January 1, 2016. During the month, she completed the following transactions connected with her professional practice:

a.	Transferred cash from a personal bank account to an account to be used for the business, $22,000.
b.	Paid January rent for office and workroom, $1,650.
c.	Purchased used automobile for $26,000, paying $4,800 cash and giving a note payable for the remainder.
d.	Purchased office and computer equipment on account, $5,600.
e.	Paid cash for supplies, $1,250.
f.	Paid cash for annual insurance policies, $3,000.
g.	Received cash from client for plans delivered, $13,450.
h.	Paid cash for miscellaneous expenses, $2,300.
i.	Paid cash to creditors on account, $3,800.
j.	Paid installment due on note payable, $700.
k.	Received invoice for blueprint service, due in February, $4,000.
l.	Recorded fees earned on plans delivered, payment to be received in February, $20,600.
m.	Paid salary of assistants, $3,500.
n.	Paid gas, oil, and repairs on automobile for January, $1,300.

	Required:
1.	Record these transactions directly in the following T accounts, without journalizing: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Notes Payable; Accounts Payable; Kimberly Manis, Capital; Professional Fees; Salary Expense; Blueprint Expense; Rent Expense; Automobile Expense; Miscellaneous Expense. To the left of the amount entered in the accounts, select the appropriate letter to identify the transaction.
2.	Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.
3.	Prepare an unadjusted trial balance for Kimberly Manis, Architect, as of January 31, 2016.
4.	Determine the net income or net loss for January. 1. Record these transactions directly in the following T accounts, without journalizing: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Notes Payable; Accounts Payable; Kimberly Manis, Capital; Professional Fees; Salary Expense; Blueprint Expense; Rent Expense; Automobile Expense; Miscellaneous Expense. To the left of the amount entered in the accounts, select the appropriate letter to identify the transaction. 2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance. Cash Bal. Accounts Receivable Supplies Prepaid Insurance Automobiles Equipment Notes Payable Bal. Accounts Payable Bal. Kimberly Manis, Capital Professional Fees Bal. Salary Expense Blueprint Expense Rent Expense Automobile Expense Miscellaneous Expense 3. Prepare an unadjusted trial balance for Kimberly Manis, Architect, as of January 31, 2016. Kimberley Manis, Architect UNADJUSTED TRIAL BALANCE January 31, 2016 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Supplies 4 Prepaid Insurance 5 Automobiles 6 Equipment 7 Notes Payable 8 Accounts Payable 9 Kimberly Manis, Capital 10 Professional Fees 11 Salary Expense 12 Blueprint Expense 13 Rent Expense 14 Automobile Expense 15 Miscellaneous Expense 16 Totals 4. Determine the net income or net loss for January.

Answer 1

Answer 1 & 2..
Cash					Accounts Receivable					Supplies
a.	22,000.00	1,650.00	b.		l.	20,600.00				e.	1,250.00
g.	13,450.00	4,800.00	c.
		1,250.00	e.		Automobiles					Equipment
		3,000.00	f.		c.	26,000.00				d.	5,600.00
		2,300.00	h.
		3,800.00	i.		Accounts Payable					Kimberly Manis, Capital
		700.00	j.		i.	3,800.00	5,600.00	d.				22,000.00	a.
		3,500.00	m.				4,000.00	k.
		1,300.00	n.							Blueprint Expense
End. Bal.	13,150.00									k.	4,000.00
					End. Bal.		5,800.00
Prepaid Insurance										Miscellaneous Expense
f.	3,000.00				Salary Expense					h.	2,300.00
					m.	3,500.00
Notes Payable
j.	700.00	21,200.00	c.		Automobile Expense
					n.	1,300.00
End. Bal.		20,500.00
Professional Fees
		13,450.00	g.
		20,600.00	l.
End. Bal.		34,050.00
Rent Expense
b.	1,650.00

Answer 3.
Kimberly Manis, Architect
Unadjusted Trial Balance
31-Jan-16
Accounts Title	Debits	Credits
Cash	13,150.00
Accounts Receivable	20,600.00
Supplies	1,250.00
Prepaid Insurance	3,000.00
Automobiles	26,000.00
Equipment	5,600.00
Notes Payable		20,500.00
Accounts Payable		5,800.00
Kimberly Manis, Capital		22,000.00
Professional Fees		34,050.00
Salary Expense	3,500.00
Blueprint Expense	4,000.00
Rent Expense	1,650.00
Automobile Expense	1,300.00
Miscellaneous Expense	2,300.00
Total	82,350.00	82,350.00
Answer 4.
Income Statement
Month Ended Jan 31, 2016
Revenues:
Professional Fees		34,050.00
Expenses
Insurance Expenses	250.00
Salary Expense	3,500.00
Blueprint Expense	4,000.00
Rent Expense	1,650.00
Automobile Expense	1,300.00
Miscellaneous Expense	2,300.00
Total Expenses		13,000.00
Net Income (Loss)		21,050.00
Insurance Expenses - Jan = $3,000 X 1/12 = $250
Note - 1. Deprecition Expenses is not Recorded as no details are given in the question
2. Supplies Expenses are not considered as no details are given in the question