Daniel Kelly, an attorney, opened his law practice on October 1. Using the horizontal worksheet below, record the following October transactions. Total the columns to show that assets equal liabilities plus stockholders’ equity as of October 31. 01. Kelly started his law practice by contributing $19,500 cash to the business on October 1, receiving shares of common stock in the company. 02. Purchased office equipment on account, $10,400. 03. Paid office rent for October, $700. 04. Paid $9,600 to access online legal database for two years. 05. Billed clients for services rendered, $11,300. 06. Made $6,000 payment on account for the equipment purchased on October 2. 07. Paid legal assistant’s salary, $2,800. 08. Collected $9,400 from clients previously billed for services. 09. Received invoice for October utilities, $180; it will be paid in November. 10. The company paid stockholders $1,500 as a cash dividend. Note: Use negative signs with answers, when appropriate.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Daniel Kelly, an attorney, opened his law practice on October 1.

Using the horizontal worksheet below, record the following October transactions. Total the columns to show that assets equal liabilities plus stockholders’ equity as of October 31.
01. Kelly started his law practice by contributing $19,500 cash to the business on October 1, receiving shares of common stock in the company.
02. Purchased office equipment on account, $10,400.
03. Paid office rent for October, $700.
04. Paid $9,600 to access online legal database for two years.
05. Billed clients for services rendered, $11,300.
06. Made $6,000 payment on account for the equipment purchased on October 2.
07. Paid legal assistant’s salary, $2,800.
08. Collected $9,400 from clients previously billed for services.
09. Received invoice for October utilities, $180; it will be paid in November.
10. The company paid stockholders $1,500 as a cash dividend.
Note: Use negative signs with answers, when appropriate.

Assets
Liabilities
Stockholders' Equity
Legal
Accounts
Database
Office
Accounts
Common
Retained Earnings
Transaction
Cash
+ Receivable + Subscription + Equipment =
Payable
Stock
Revenue
Expenses
Dividends
+
1. Invested cash to begin business.
19,500
19,500
2. Purchased office equipment.
10,400
10,400
3. Paid office rent.
(700)
700
4. Paid for database access.
(9,600)
9,600
5. Billed clients for services rendered.
11,300
11,300
6. Made partial payment on account.
7. Paid assistant's salary.
8. Collected from clients previously billed.
9. Received invoice for utilities.
10. Paid stockholders a dividend.
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Transcribed Image Text:Assets Liabilities Stockholders' Equity Legal Accounts Database Office Accounts Common Retained Earnings Transaction Cash + Receivable + Subscription + Equipment = Payable Stock Revenue Expenses Dividends + 1. Invested cash to begin business. 19,500 19,500 2. Purchased office equipment. 10,400 10,400 3. Paid office rent. (700) 700 4. Paid for database access. (9,600) 9,600 5. Billed clients for services rendered. 11,300 11,300 6. Made partial payment on account. 7. Paid assistant's salary. 8. Collected from clients previously billed. 9. Received invoice for utilities. 10. Paid stockholders a dividend. ТОTALS ㅇㅇㅇㅇㅇㅇㅇ0 ㅇㅇ|0 ㅇㅇㅇㅇㅇㅇㅇ|0| ㅇ8。 o o o o|o o o o o o o olo ㅇㅇㅇㅇㅇㅇㅇㅇ0 |0| 이0 ㅇㅇㅇ 8ㅇㅇㅇ ㅇㅇ|0 이 ㅇㅇ o o o oo
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Horizontal model is the one in which the transactions of an entity are recorded in the form of accounting equation.

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