Question

Jannelle Richards has worked as a graphic designer for more than 5 years. She decided to open her own

graphic design business as of the first of last month, which is known as Sonoran Graphic Designs.

Account for the effect of the following transactions on the accounting equation for Sonoran.

1. Initial investment by Jannelle Richards, $25,000.

2. Purchased office supplies from OfficeMax for $1,500, on credit.

3. Paid $4,500 on a 6-month office rental contract.

4. Purchases $9,000 of office furniture from Ikea, on account.

5. Paid $6,000 for a new computer and printer (Equipment).

6. Received $9,600 in cash from sales for the first half of the month.

7. For the first half of the month, sales on account totaled $5,100.

8. Received $3,000 cash advance from a customer to develop a graphic design project.

9. Paid part-time assistant $1,000 for 2-weeks wages.

10. Paid telephone bill for the month of $350.

11. Received utility bill from APS for $200.

12. Collected cash from credit sales of $3,200.

13. Recorded rental expense for first month, $750.

14. Received $6,900 in cash from sales for the second half of the month.

15. Paid part-time assistant $1,000 for 2-weeks wages.

16. Paid Ikea $5,000 on account.

17. Withdrew $12,000 for personal use.

Requirements:

1. Use the attached T-Account Page to summarize the preceding transactions as they affect the

accounting equation. Identify each transaction by number. Correctly total each account.

2. In good order and form, prepare a Trial Balance

Answer 1

		cash a/c
DATE	PARTICULAR	AMOUNT	DATE	PARTICULAR	AMOUNT
1	Jannelle Richards capital a/c	25000	3	office rental a/c	4500
6	sales a/c	9600	5	Equipment a/c	6000
12	debtors	3200	8	Cash advances	3000
14	sales a/c	6900	9	salary	1000
			10	telephone bill a/c	350
			11	utility	200
			17	Jannelle Richards capital a/c	12000
			13	office rental a/c	750
			15	salary	1000
		Jannelle Richards capital a/c
DATE	PARTICULAR	AMOUNT	DATE	PARTICULAR	AMOUNT
17	cash	12000	1	cash a/c	25000
	balance	13000
		office supplies a/c
DATE	PARTICULAR	AMOUNT	DATE	PARTICULAR	AMOUNT
2	OfficeMax a/c	1500		balance	1500
		OfficeMax a/c
DATE	PARTICULAR	AMOUNT	DATE	PARTICULAR	AMOUNT
	balance	1500	2	office supplies a/c	1500
		advance office rental a/c
DATE	PARTICULAR	AMOUNT	DATE	PARTICULAR	AMOUNT
3	cash a/c	4500	13	office rent	750
				balance	3750
		Ikea a/c
DATE	PARTICULAR	AMOUNT	DATE	PARTICULAR	AMOUNT
16	cash	5000	4	furniture a/c	9000
	balance	4000
		furniture a/c
DATE	PARTICULAR	AMOUNT	DATE	PARTICULAR	AMOUNT
4	Ikea a/c	9000		balance	9000
		Equipment a/c
DATE	PARTICULAR	AMOUNT	DATE	PARTICULAR	AMOUNT
5	cash	6000		balance	6000
		sales a/c
DATE	PARTICULAR	AMOUNT	DATE	PARTICULAR	AMOUNT
	balance	21600	6	cash	9600
			7	debtors	5100
			14	cash	6900
				total	21600
		cash advance a/c
DATE	PARTICULAR	AMOUNT	DATE	PARTICULAR	AMOUNT
	balance	3000	8	cash	3000
		debtor a/c
DATE	PARTICULAR	AMOUNT	DATE	PARTICULAR	AMOUNT
7	sales	5100	12	cash	3200
				balance	5100
		salary a/c
DATE	PARTICULAR	AMOUNT	DATE	PARTICULAR	AMOUNT
9	cash	1000		balance	2000
15	cash	1000
		telephone bill
DATE	PARTICULAR	AMOUNT	DATE	PARTICULAR	AMOUNT
10	cash	350		balance	350
		utility bill
DATE	PARTICULAR	AMOUNT	DATE	PARTICULAR	AMOUNT
11	cash	200		balance	200
		office rent
DATE	PARTICULAR	AMOUNT	DATE	PARTICULAR	AMOUNT
13	advance rent a/c	750		balance	750

TRIAL BALANCE
PARTICULARS	DEBIT	CREDIT
cash a/c	14900
Jannelle Richards capital a/c		13000
office supplies a/c	1500
OfficeMax a/c		1500
advance office rental a/c	3750
Ikea a/c		4000
furniture a/c	9000
Equipment a/c	6000
sales a/c		21600
cash advance a/c		3000
debtor a/c	5100
salary a/c	2000
telephone bill	350
utility bill	200
office rent	750