Question
In: Accounting
On June 1 of this year, J. Larkin, Optometrist, established the Larkin Eye Clinic. The clinic's...
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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 | ||||||||||||
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