Question

Marjorie Knaus, an architect, organized Knaus Architects on January 1, 2018. During the month, Knaus Architects completed the following transactions:

A.	Issued common stock to Marjorie Knaus in exchange for $46,100.
B.	Paid January rent for office and workroom, $4,600.
C.	Purchased used automobile for $30,000, paying $6,900 cash and giving a note payable for the remainder.
D.	Purchased office and computer equipment on account, $9,200.
E.	Paid cash for supplies, $2,210.
F.	Paid cash for annual insurance policies, $3,100.
G.	Received cash from client for plans delivered, $11,500.
H.	Paid cash for miscellaneous expenses, $1,250.
I.	Paid cash to creditors on account, $2,670.
J.	Paid installment due on note payable, $370.
K.	Received invoice for blueprint service, due in February, $1,500.
L.	Recorded fees earned on plans delivered, payment to be received in August, $8,000.
M.	Paid salary of assistants, $2,400.
N.	Paid gas, oil, and repairs on automobile for July, $600.

	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; Common Stock; 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 Knaus Architects as of January 31, 2018.
4.	Determine the net income or net loss for January.

T Accounts

1. Record these transactions directly in the following T accounts, without journalizing: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Notes Payable; Accounts Payable; Common Stock; 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
A.		B.
G.		C.
		E.
		F.
		H.
		I.
		J.
		M.
		N.
Bal.

Accounts Receivable
I.

Supplies

Prepaid Insurance

Automobiles

Equipment

Notes Payable
		Bal.

Accounts Payable
		Bal.

Common Stock

Professional Fees
		Bal.

Salary Expense

Blueprint Expense

Rent Expense

Automobile Expense

Miscellaneous Expense

Unadjusted Trial Balance

3. Prepare an unadjusted trial balance for Knaus Architects as of January 31, 2018.

Knaus Architects

UNADJUSTED TRIAL BALANCE

January 31, 2018

	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	Common Stock
10	Professional Fees
11	Salary Expense
12	Blueprint Expense
13	Rent Expense
14	Automobile Expense
15	Miscellaneous Expense
16	Totals

Final Question

4. Determine the net income or net loss for January.

Hello. Please fill in the blanks provided in this post. Thank You!

Answer 1

Cash
A.	46100	B.	4600
G.	11500	C.	6900
		E.	2210
		F.	3100
		H.	1250
		I.	2670
		J.	370
		M.	2400
		N.	600
	57600		24100
Bal.	33500
Accounts Receivable
I.	8000
Supplies
E	2210
Prepaid Insurance
F	3100
Automobiles
C	30000
Equipment
D	9200
Notes Payable
J	370	C	23100
	370		23100
		Bal.	22730
Accounts Payable
I	2670	D	9200
		K	1500
	2670		10700
		Bal.	8030
Common Stock
		A	46100
Professional Fees
		G	11500
		L	8000
		Bal.	19500
Salary Expense
M	2400
Blueprint Expense
K	1500
Rent Expense
B	4600
Automobile Expense
N	600
Miscellaneous Expense
H	1250
UNADJUSTED TRIAL BALANCE
January 31, 2018
	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	33500
2	Accounts Receivable	8000
3	Supplies	2210
4	Prepaid Insurance	3100
5	Automobiles	30000
6	Equipment	9200
7	Notes Payable		22730
8	Accounts Payable		8030
9	Common Stock		46100
10	Professional Fees		19500
11	Salary Expense	2400
12	Blueprint Expense	1500
13	Rent Expense	4600
14	Automobile Expense	600
15	Miscellaneous Expense	1250
16	Totals	96360	96360
4. Determine the net income or net loss for January.
INCOME SUMMARY
	Professional Fees		19500
	Expenses:
	Salary Expense	2400
	Blueprint Expense	1500
	Rent Expense	4600
	Automobile Expense	600
	Miscellaneous Expense	1250	10350
	Net income		9150
	Note:
	Insurance expense for 3100/12 = 258 is to be adjusted from prepaid insurance.
	which has not been done as nothing is mentioned about adjustments to be made. Similarly depreciation
	expense and supplies expense have not been accounted for, as details are not available.