Question
In: Accounting
On June 1 of this year, J. Larkin, Optometrist, established the Larkin Eye Clinic. The clinic's...
-
On June 1 of this year, J. Larkin, Optometrist, established the Larkin Eye Clinic. The clinic's account names are presented below. Transactions completed during the month follow.
Assets = Liabilities + Owner's Equity Office Accounts Cash + Supplies + Equipment = Payable + Capital − Drawing + Revenue − Expenses - Larkin deposited $25,000 in a bank account in the name of the business.
- Paid the office rent for the month, $950, Ck. No. 1001 (Rent Expense).
- Bought supplies for cash, $357, Ck. No. 1002.
- Bought office equipment on account from NYC Office Equipment Store, $8,956.
- Bought a computer from Warden's Office Outfitters, $1,636, paying $750 in cash and placing the balance on account, Ck. No. 1003.
- Sold professional services for cash, $3,482 (Professional Fees).
- Paid on account to Warden's Office Outfitters, $886, Ck. No. 1004.
- Received and paid the bill for utilities, $382, Ck. No. 1005 (Utilities Expense).
- Paid the salary of the assistant, $1,050, Ck. No. 1006 (Salary Expense).
- Sold professional services for cash, $3,295 (Professional Fees).
- Larkin withdrew cash for personal use, $1,250, Ck. No. 1007.
Required:
- Record the transactions and the balances after each transaction.
- After all transactions have been entered, enter the total
assets and the total liabilities plus owner's equity in the entry
boxes below the transactions. If the two totals do not equal each
other, first check the addition and subtraction. If you still
cannot find the error, re-analyze each transaction.
1. Enter increases to accounts as positive amounts and decreases to accounts as negative amounts. If an amount box does not require an entry, leave it blank or enter "0".
Assets = Liabilities + Owner's Equity Office Accounts J. Larkin, J. Larkin, Cash + Supplies + Equipment = Payable + Capital − Drawing + Revenue − Expenses (a) (b) Bal. = (c) Bal. = (d) Bal. = (e) Bal. = (f) Bal. = (g) Bal. = (h) Bal. = (i) Bal. = (j) Bal. = (k) Bal. + + = + − + − Assets $ Liabilities and Owner's Equity $
Solutions
Expert Solution
Solution:
| Assets | = | Liabilities | + | Owner's Equity | |||||||||||
| Event | Cash | + | Supplies | + | Office Equipment | = | Accounts Payable | + | J. Larkin, Capital | − | J. Larkin, Drawing | + | Revenue | − | Expenses |
| (a) | $25,000.00 | + | $0.00 | + | $0.00 | = | $0.00 | + | $25,000.00 | - | $0.00 | + | $0.00 | - | $0.00 |
| (b) | -$950.00 | + | $0.00 | + | $0.00 | = | $0.00 | + | $0.00 | - | $0.00 | + | $0.00 | - | $950.00 |
| Bal. | $24,050.00 | + | $0.00 | + | $0.00 | = | $0.00 | + | $25,000.00 | - | $0.00 | + | $0.00 | - | $950.00 |
| (c) | -$357.00 | + | $357.00 | + | $0.00 | = | $0.00 | + | $0.00 | - | $0.00 | + | $0.00 | - | $0.00 |
| Bal. | $23,693.00 | + | $357.00 | + | $0.00 | = | $0.00 | + | $25,000.00 | - | $0.00 | + | $0.00 | - | $950.00 |
| (d) | $0.00 | + | $0.00 | + | $8,956.00 | = | $8,956.00 | + | $0.00 | - | $0.00 | + | $0.00 | - | $0.00 |
| Bal. | $23,693.00 | + | $357.00 | + | $8,956.00 | = | $8,956.00 | + | $25,000.00 | - | $0.00 | + | $0.00 | - | $950.00 |
| (e) | -$750.00 | + | $0.00 | + | $1,636.00 | = | $886.00 | + | $0.00 | - | $0.00 | + | $0.00 | - | $0.00 |
| Bal. | $22,943.00 | + | $357.00 | + | $10,592.00 | = | $9,842.00 | + | $25,000.00 | - | $0.00 | + | $0.00 | - | $950.00 |
| (f) | $3,482.00 | + | $0.00 | + | $0.00 | = | $0.00 | + | $0.00 | - | $0.00 | + | $3,482.00 | - | $0.00 |
| Bal. | $26,425.00 | + | $357.00 | + | $10,592.00 | = | $9,842.00 | + | $25,000.00 | - | $0.00 | + | $3,482.00 | - | $950.00 |
| (g) | -$886.00 | + | $0.00 | + | $0.00 | = | -$886.00 | + | $0.00 | - | $0.00 | + | $0.00 | - | $0.00 |
| Bal. | $25,539.00 | + | $357.00 | + | $10,592.00 | = | $8,956.00 | + | $25,000.00 | - | $0.00 | + | $3,482.00 | - | $950.00 |
| (h) | -$382.00 | + | $0.00 | + | $0.00 | = | $0.00 | + | $0.00 | - | $0.00 | + | $0.00 | - | $382.00 |
| Bal. | $25,157.00 | + | $357.00 | + | $10,592.00 | = | $8,956.00 | + | $25,000.00 | - | $0.00 | + | $3,482.00 | - | $1,332.00 |
| (i) | -$1,050.00 | + | $0.00 | + | $0.00 | = | $0.00 | + | $0.00 | - | $0.00 | + | $0.00 | - | $1,050.00 |
| Bal. | $24,107.00 | + | $357.00 | + | $10,592.00 | = | $8,956.00 | + | $25,000.00 | - | $0.00 | + | $3,482.00 | - | $2,382.00 |
| (j) | $3,295.00 | + | $0.00 | + | $0.00 | = | $0.00 | + | $0.00 | - | $0.00 | + | $3,295.00 | - | $0.00 |
| Bal. | $27,402.00 | + | $357.00 | + | $10,592.00 | = | $8,956.00 | + | $25,000.00 | - | $0.00 | + | $6,777.00 | - | $2,382.00 |
| (k) | -$1,250.00 | + | $0.00 | + | $0.00 | = | $0.00 | + | $0.00 | - | $1,250.00 | + | $0.00 | - | $0.00 |
| Bal. | $26,152.00 | + | $357.00 | + | $10,592.00 | = | $8,956.00 | + | $25,000.00 | - | $1,250.00 | + | $6,777.00 | - | $2,382.00 |
| Assets | $37,101.00 | Liabilities and Owner's Equity | $37,101.00 | ||||||||||||
ekkarill92 answered 1 year agoRelated Solutions
The audiology department at Randall Clinic offers many services to the clinic's patients. The three most...
The audiology department at Randall Clinic offers many services
to the clinic's patients. The three most common, along with cost
and utilization data, are as follows: Service Variable Cost per
Service Annual Direct Fixed Costs Annual Number of Visits Basic
examination $5.2 $45158 3192 Advanced examination 7.9 30071 1585
Therapy session 9.6 44792 546 Assume that the audiology department
is allocated $100000 in total overhead by the clinic, and the
department director has allocated $47017 of this amount to the...
Mrs. J is a 58 year old Appalachian woman visiting the community wellness clinic. Mrs. J...
Mrs. J is a 58 year old Appalachian woman visiting the community
wellness clinic. Mrs. J identifies a desire
to lose weight. She has a good family
support system and health insurance. After completing her
health
history, you note she is morbidly
obese, leads a sedentary lifestyle and frequently has joint pain in
her knees.
She treats her arthritis by wearing a
copper bracelet and rubbing her knees with a solvent commonly used
to
lubricate metal...
On June 1 of the current year, Chad Wilson established a business to manage rental property....
On June 1 of the current year, Chad Wilson established a
business to manage rental property. He completed the following
transactions during June:
Opened a business bank account with a deposit of $48,000 from
personal funds.
Purchased office supplies on account, $2,080.
Received cash from fees earned for managing rental property,
$5,770.
Paid rent on office and equipment for the month, $2,550.
Paid creditors on account, $950.
Billed customers for fees earned for managing rental property,
$4,730.
Paid automobile expenses...
Transactions On June 1 of the current year, Chad Wilson established a business to manage rental...
Transactions
On June 1 of the current year, Chad Wilson established a
business to manage rental property. He completed the following
transactions during June:
Opened a business bank account with a deposit of $26,000 from
personal funds.
Purchased office supplies on account, $2,390.
Received cash from fees earned for managing rental property,
$6,690.
Paid rent on office and equipment for the month, $2,930.
Paid creditors on account, $1,080.
Billed customers for fees earned for managing rental property,
$5,420.
Paid automobile...
Transactions On June 1 of the current year, Chad Wilson established a business to manage rental...
Transactions
On June 1 of the current year, Chad Wilson established a
business to manage rental property. He completed the following
transactions during June:
Opened a business bank account with a deposit of $41,000 from
personal funds.
Purchased office supplies on account, $3,000.
Received cash from fees earned for managing rental property,
$8,320.
Paid rent on office and equipment for the month, $3,680.
Paid creditors on account, $1,360.
Billed customers for fees earned for managing rental property,
$6,820.
Paid automobile...
On June 1 of the current year, Pamela Schatz established a business to manage rental property....
On June 1 of the current year, Pamela Schatz
established a business to manage rental property. She completed the
following transactions during June:
a. Opened a business bank account with a deposit of $55,000 from
personal funds.
b. Purchased office supplies on account, $3,300.
c. Received cash from fees earned for managing rental property,
$18,300.
d. Paid rent on office and equipment for the month, $8,300.
e. Paid creditors on account, $2,290. f. Billed customers for fees
earned for managing...
Transactions On June 1 of the current year, Chad Wilson established a business to manage rental...
Transactions
On June 1 of the current year, Chad Wilson established a
business to manage rental property. He completed the following
transactions during June:
Opened a business bank account with a deposit of $30,000 from
personal funds.
Purchased office supplies on account, $1,800.
Received cash from fees earned for managing rental property,
$10,000.
Paid rent on office and equipment for the month, $4,500.
Paid creditors on account, $1,250.
Billed customers for fees earned for managing rental property,
$16,800.
Paid automobile...
On June 1 of the current year, Chad Wilson established a business to manage rental property....
On June 1 of the current year, Chad Wilson established a
business to manage rental property. He completed the following
transactions during June:
Required:
1. Indicate the effect of each transaction and
the balances after each transaction:
For those boxes in which no entry is required, leave the box
blank.
For those boxes in which you must enter subtractive or negative
numbers use a minus sign. (Example: -300)
Opened a business bank account with a deposit of $28,000 from
personal...
Transactions On June 1 of the current year, Chad Wilson established a business to manage rental...
Transactions
On June 1 of the current year, Chad Wilson established a
business to manage rental property. He completed the following
transactions during June:
Opened a business bank account with a deposit of $35,000 from
personal funds.
Purchased office supplies on account, $2,050.
Received cash from fees earned for managing rental property,
$5,600.
Paid rent on office and equipment for the month, $2,510.
Paid creditors on account, $930.
Billed customers for fees earned for managing rental property,
$4,650.
Paid automobile...
Transactions On June 1 of the current year, Maria Edsall established a business to manage rental...
Transactions
On June 1 of the current year, Maria Edsall established a
business to manage rental property. She completed the following
transactions during June:
Opened a business bank account with a deposit of $45,000 from
personal funds.
Purchased supplies (pens, file folders, and copy paper) on
account, $3,180.
Received cash from fees earned for managing rental property,
$8,810.
Paid rent on office and equipment for the month, $3,900.
Paid creditors on account, $1,440.
Billed customers for fees earned for managing...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- The legal landscape is perpetually changing. Psychologists must remain abreast of these changes to avoid potentially...
- We are evaluating a project that costs $1.68 million, has a six-year life, and has no...
- In C++ Having call-by-reference allows one to use storeback parameters, i.e., parameters whose values are transmitted...
- You must evaluate a proposal to buy a new milling machine. The base price is $175,000,...
- “Triangle Guessing” game in Python The program accepts the lengths of three (3) sides of a...
- THIS PROGRAM HAS TO BE WRITTEN IN C Single function to perform the parity computation on...
- Consider a buffer system consisting of Benzoic acid (pKa = 4.20) and sodium benzoate, a) Would...
ADVERTISEMENT