In: Accounting
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:
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 |
|
Feedback
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.
$
Feedback
4. Recall that Revenue - Expenses = Net Income (Loss).
Feedback
Incorrect
1&2. | Cash | |||
Ref. | Debit | Ref. | Credit | |
a. | 36000 | b. | 2400 | |
g. | 12200 | c. | 7800 | |
e. | 2150 | |||
f. | 4000 | |||
h. | 815 | |||
i. | 4500 | |||
j. | 5000 | |||
m. | 6450 | |||
n. | 1020 | |||
48200 | 34135 | |||
Bal. | 14065 | |||
Accounts receivable | ||||
Ref. | Debit | Ref. | Credit | |
l. | 18300 | |||
Supplies | ||||
Ref. | Debit | Ref. | Credit | |
e. | 2150 | |||
Prepaid insurance | ||||
Ref. | Debit | Ref. | Credit | |
f. | 4000 | |||
Automobiles | ||||
Ref. | Debit | Ref. | Credit | |
c. | 32800 | |||
Equipment | ||||
Ref. | Debit | Ref. | Credit | |
d. | 9000 | |||
Notes payable | ||||
Ref. | Debit | Ref. | Credit | |
j. | 5000 | c. | ||
(32800-7800) | 25000 | |||
5000 | 25000 | |||
Bal. | 20000 | |||
Accounts payable | ||||
Ref. | Debit | Ref. | Credit | |
i. | 4500 | d. | 9000 | |
k. | 2890 | |||
4500 | 11890 | |||
Bal. | 7390 | |||
Common stock | ||||
Ref. | Debit | Ref. | Credit | |
a. | 36000 |