Question

The following occurred during June at Hicks Family Counseling.

Post the following transactions into the appropriate T accounts.

Transactions:

Purchased office supplies for $1,900 in cash.

Delivered monthly statements, collected fee income of $26,500.

Paid the current month’s office rent of $3,900.

Completed professional counseling, billed client for $4,100.

Client paid fee of $2,100 for weekly counseling, previously billed.

Paid office salaries of $3,500.

Paid telephone bill of $470.

Billed client for $3,100 fee for preparing a counseling evaluation.

Purchased office supplies of $990 on account.

Paid office salaries of $3,500.

Collected $3,100 from client who was billed.

Clients paid a total of $9,200 cash in fees.

Analyze:
How much cash did the business spend during the month? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.

Answer 1