Question

The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019. The following transactions are for Randy Guttery, Landscape Consultant.

Transactions:

1. Guttery invested $151,000 in cash to start the business.
2. Paid $5,100 for the current month’s rent.
3. Bought office furniture for $15,820 in cash.
4. Performed services for $7,300 in cash.
5. Paid $1,160 for the monthly telephone bill.
6. Performed services for $13,100 on credit.
7. Purchased a computer and copier for $36,200; paid $12,100 in cash immediately with the balance due in 30 days.
8. Received $6,550 from credit clients.
9. Paid $3,100 in cash for office cleaning services for the month.
10. Purchased additional office chairs for $4,900; received credit terms of 30 days.
11. Purchased office equipment for $31,000 and paid half of this amount in cash immediately; the balance is due in 30 days.
12. Issued a check for $8,500 to pay salaries.
13. Performed services for $13,600 in cash.
14. Performed services for $15,100 on credit.
15. Collected $7,100 on accounts receivable from charge customers.
16. Issued a check for $2,450 in partial payment of the amount owed for office chairs.
17. Paid $610 to a duplicating company for photocopy work performed during the month.
18. Paid $1,130 for the monthly electric bill.
19. Guttery withdrew $8,100 in cash for personal expenses.

Post the above transactions into the appropriate T accounts.

Analyze:
What liabilities does the business have after all transactions have been recorded?

T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.

Post the above transactions into the appropriate T accounts. (Deductions to account balances should be indicated by a minus sign.)

	Cash Accounts Receivable Bal. Bal. Office Equipment Office Furniture Bal. Bal. Accounts Payable Randy Guttery, Capital Bal. Bal. Randy Guttery, Drawing Fees Income Bal. Bal. Rent Expense Utilities Expense Bal. Bal. Salaries Expense Telephone Expense Bal. Bal. Miscellaneous Expense Bal.

Answer 1

Ledger Accounts in T format

Cash A/c
PARTICULARS	AMOUNT		PARTICULARS	AMOUNT
CAPITAL	151000		RENT	5,100
Fees Income	7,300		Office Furniture	15,820
Accounts Receivable	6,550		Telephone Expense	1,160
Fees Income	13600		Office Equipment	12100
Accounts Receivable	7100		Salaries Expense	3100
			Office Equipment	15500
			Miscellaneous Expense	610
			Utilities Expense	1130
			Randy Guttery, Drawing	8,100
			balance	62620
	185550			1,85,550

Accounts Receivable
PARTICULARS	AMOUNT		PARTICULARS	AMOUNT
Fees Income	13,100		Cash	6,550
Fees Income	15,100		Cash	7100
			Balance	14,550
TOTAL	28,200		TOTAL	28,200

Office Equipment
PARTICULARS	AMOUNT		PARTICULARS	AMOUNT
cash	12100
Accounts Payable	24100
Cash	15500
Accounts Payable	15500
			balance	67200
TOTAL	67200		TOTAL	67200

Office Furniture
PARTICULARS	AMOUNT		PARTICULARS	AMOUNT
Cash	15,820
Accounts Payable	4,900
			balance	20,720
TOTAL	20,720		TOTAL	20,720

Accounts Payable
PARTICULARS	AMOUNT		PARTICULARS	AMOUNT
Cash	2450
			Office Equipment	24100
			Office Furniture	4,900
balance	42,050		Office Equipment	15,500
TOTAL	44,500		TOTAL	44,500

Randy Guttery, Capital
PARTICULARS	AMOUNT		PARTICULARS	AMOUNT
Drawings	8100		cash	151000
balance	142900
TOTAL	151000		TOTAL	151000

Randy Guttery, Drawing
PARTICULARS	AMOUNT		PARTICULARS	AMOUNT
Cash	8100	capital		8100
TOTAL	8100		TOTAL	8100

Fees Income
PARTICULARS	AMOUNT		PARTICULARS	AMOUNT
			Cash	7,300
			Cash	13,600
			Accounts Receivable	15,100
			Accounts Receivable	13,100
Profit and loss A/c	49100
TOTAL	49,100		TOTAL	49,100

Rent Expense
PARTICULARS	AMOUNT		PARTICULARS	AMOUNT
Cash	5100
			Profit and loss A/c	5100
TOTAL	5100		TOTAL	5100

Utilities Expense
PARTICULARS	AMOUNT		PARTICULARS	AMOUNT
cash	1130		Profit and loss A/c	1130
TOTAL	1130		TOTAL	1130

Salaries Expense
PARTICULARS	AMOUNT		PARTICULARS	AMOUNT
Cash	3100
Bank	8500		Profit and loss A/c	11600
TOTAL	11600		TOTAL	11600

Telephone Expense
PARTICULARS	AMOUNT		PARTICULARS	AMOUNT
Cash	1,160
			Profit and loss A/c	1,160
TOTAL	1,160		TOTAL	1,160

Miscellaneous Expense
PARTICULARS	AMOUNT		PARTICULARS	AMOUNT
cash	610
			Profit and loss A/c	610
TOTAL	610		TOTAL	610

Bank Account
PARTICULARS	AMOUNT		PARTICULARS	AMOUNT
			Salaries Expense	8500
			Accounts Payable	2450
balance	10950
TOTAL	10950		TOTAL	10950

liabilities the business have after all transactions have been recorded is

Accounts Payable