Ann SimpsonAnn Simpson started her practice as a design consultant on September1, 2017. During the first month of operations, the business completed the following transactions: Sep. 1 Received $ 40 , 000 cash and gave capital to Simpson. 4 Purchased office supplies, $ 1,400, and furniture, $ 2, 200, on account. 6 Performed services for a law firm and received $ 1, 300 cash. 7 Paid $ 28 , 000 cash to acquire land to be used in operations. 10 Performed services for a hotel and received its promise to pay the $ 1 , 500 within one week. 14 Paid for the furniture purchased September 4 on account. 15 Paid assistant's semimonthly salary, $ 1 , 510. 17 Received cash on account, $ 1 , 400. 20 Prepared a design for a school on account, $ 750. 25 Received $ 2, 100 cash for design services to be performed in October. 28 Received $ 2, 700 cash for consulting with Plummer & Gorden. 29 Paid $ 1, 860 cash for a 12-month insurance policy starting on October 1. 30 Paid assistant's semimonthly salary, $ 1 , 510. 30 Paid monthly rent expense, $ 700. 30 Received a bill for utilities, $ 500. The bill will be paid next month. 30 Simpson withdrew cash of $ 3 , 100. Requirements: 1.Record each transaction in the journal using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Furniture; Land; Accounts Payable; Utilities Payable; Unearned Revenue; Simpson, Capital; Simpson, Withdrawals; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense. Explanations are not required. 2.T-accounts have been opened for each of the accounts. Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal. 3.Prepare the trial balance of Ann Simpson, Designer, at September 30, 2017.
Ann SimpsonAnn Simpson started her practice as a design consultant on September1, 2017. During the first month of operations, the business completed the following transactions: Sep. 1 Received $ 40 , 000 cash and gave capital to Simpson. 4 Purchased office supplies, $ 1,400, and furniture, $ 2, 200, on account. 6 Performed services for a law firm and received $ 1, 300 cash. 7 Paid $ 28 , 000 cash to acquire land to be used in operations. 10 Performed services for a hotel and received its promise to pay the $ 1 , 500 within one week. 14 Paid for the furniture purchased September 4 on account. 15 Paid assistant's semimonthly salary, $ 1 , 510. 17 Received cash on account, $ 1 , 400. 20 Prepared a design for a school on account, $ 750. 25 Received $ 2, 100 cash for design services to be performed in October. 28 Received $ 2, 700 cash for consulting with Plummer & Gorden. 29 Paid $ 1, 860 cash for a 12-month insurance policy starting on October 1. 30 Paid assistant's semimonthly salary, $ 1 , 510. 30 Paid monthly rent expense, $ 700. 30 Received a bill for utilities, $ 500. The bill will be paid next month. 30 Simpson withdrew cash of $ 3 , 100. Requirements: 1.Record each transaction in the journal using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Furniture; Land; Accounts Payable; Utilities Payable; Unearned Revenue; Simpson, Capital; Simpson, Withdrawals; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense. Explanations are not required. 2.T-accounts have been opened for each of the accounts. Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal. 3.Prepare the trial balance of Ann Simpson, Designer, at September 30, 2017.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ann SimpsonAnn Simpson started her practice as
a design consultant on
September1, 2017.
During the first month of operations, the business
completed the following transactions:
Sep. 1 Received $ 40 , 000 cash and gave capital to Simpson.
4 Purchased office supplies, $ 1 , 400, and furniture, $ 2 , 200,
on account.
6 Performed services for a law firm and received $ 1 , 300
cash.
7 Paid $ 28 , 000 cash to acquire land to be used in operations.
10 Performed services for a hotel and received its promise to
pay the $ 1 , 500 within one week.
14 Paid for the furniture purchased September 4 on account.
15 Paid assistant's semimonthly salary, $ 1 , 510.
17 Received cash on account, $ 1 , 400.
20 Prepared a design for a school on account, $ 750.
25 Received $ 2,100 cash for design services to be performed
in October.
28 Received $ 2 , 700 cash for consulting with Plummer &
Gorden.
29 Paid $ 1, 860 cash for a 12-month insurance policy starting
on October 1.
30 Paid assistant's semimonthly salary, $ 1 , 510.
30 Paid monthly rent expense, $ 700.
30 Received a bill for utilities, $ 500. The bill will be paid
next month.
30 Simpson withdrew cash of $ 3 , 100.
Requirements:
1.Record each transaction in the journal using the following
account titles: Cash; Accounts Receivable; Office Supplies;
Prepaid Insurance; Furniture; Land; Accounts Payable;
Utilities Payable; Unearned Revenue; Simpson, Capital;
Simpson, Withdrawals; Service Revenue; Salaries Expense;
Rent Expense; Utilities Expense. Explanations are not
required.
2.T-accounts have been opened for each of the accounts. Post
the journal entries to the T-accounts, using transaction dates as
posting references in the ledger accounts. Label the balance of
each account Bal.
3.Prepare the trial balance of Ann Simpson, Designer, at
September 30, 2017.
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