Question

1. Entries into T accounts and Trial Balance

   Connie Young, an architect, opened an office on October 1, 2019. During the month, she completed the following transactions connected with her professional practice:

   1. Transferred cash from a personal bank account to an account to be used for the business, $36,000.
   2. Paid October rent for office and workroom, $2,400.
   3. Purchased used automobile for $32,800, paying $7,800 cash and giving a note payable for the remainder.
   4. Purchased office and computer equipment on account, $9,000.
   5. Paid cash for supplies, $2,150.
   6. Paid cash for annual insurance policies, $4,000.
   7. Received cash from client for plans delivered, $12,200.
   8. Paid cash for miscellaneous expenses, $815.
   9. Paid cash to creditors on account, $4,500.
   10. Paid $5,000 on note payable.
   11. Received invoice for blueprint service, due in November, $2,890.
   12. Recorded fees earned on plans delivered, payment to be received in November, $18,300.
   13. Paid salary of assistants, $6,450.
   14. Paid gas, oil, and repairs on automobile for October, $1,020.

   Required:

   1. Record the above transactions (in chronological order) directly in the following T accounts, without journalizing. Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Accounts Payable; Notes Payable; Connie Young, Capital; Professional Fees; Salary Expense; Blueprint Expense; Rent Expense; Automobile Expense; Miscellaneous Expense. To the left of each 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
   c.		c.
   Bal.

   Accounts Receivable

   Supplies

   Prepaid Insurance

   Automobiles

   Equipment

   Accounts Payable
   		Bal.

   Notes Payable
   		Bal.

   Connie Young, Capital

   Professional Fees
   		Bal.

   Salary Expense

   Blueprint Expense

   Rent Expense

   Automobile Expense

   Miscellaneous Expense

   Feedback

   1. and 2. First, identify what account is used and then what type of account is used. Every account is either an asset, liability, capital, withdrawal, revenue, or expense account. Every transaction involves at least two accounts. Then determine whether the account increases or decreases. Each increase or decrease is recorded as a debit or credit in the T-accounts, following the rules of debit and credit. Net debits against credits to determine the balance and double-check to see if it is a normal balance for that account classification.

   3. Prepare an unadjusted trial balance for Connie Young, Architect, as of October 31, 2019. If an amount box does not require an entry, leave it blank.

   Connie Young, Architect
   Unadjusted Trial Balance
   October 31, 2019
   	Debit Balances	Credit Balances

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   3. The trial balance lists the ending balance of each account in a corresponding Debit or Credit column. The trial balance column totals should be equal.

   4. Determine the net income or net loss for October.
      $

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   4. Recall that Revenue - Expenses = Net Income (Loss).

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   Incorrect

Answer 1