S. Marion, a speech therapist, opened a clinic in the name of Marion Clinic. Her accountant prepared the following chart of accounts: Assets Revenue Cash Professional Fees Accounts Receivable   Office Equipment Expenses Office Furniture Salary Expense   Rent Expense Liabilities Utilities Expense Accounts Payable Miscellaneous Expense     Owner's Equity   S. Marion, Capital   S. Marion, Drawing   The following transactions occurred during June of this year: Marion deposited $46,000 in a bank account in the name of the business. Bought waiting room chairs and tables (Office Furniture) on account, $1,500. Bought a fax/copier/scanner combination (Office Equipment) from Max's Equipment for $1,000, paying $395 in cash and placing the balance on account, Ck. No. 1001. Bought an intercom system (Office Equipment) on account from Regan Office Supply, $550. Received and paid the telephone bill, $220, Ck. No. 1002. Sold professional services on account, $1,764. Received and paid the electric bill, $150, Ck. No. 1003. Received and paid the bill for the state speech therapy convention, $600, Ck. No. 1004 (Miscellaneous Expense). Sold professional services for cash, $3,510. Paid on account to Regan Office Supply, $330, Ck. No. 1005. Paid the rent for the current month, $900, Ck. No. 1006. Paid salary of the receptionist, $940, Ck. No. 1007. Marion withdrew cash for personal use, $800, Ck. No. 1008. Received $800 on account from patients who were previously billed. Required: Under each of the following T accounts, select either a plus or minus sign on the left side to indicate whether a Debit increases or decreases the classification or account and select either a plus or minus sign on the right side to indicate whether a credit increases or decreases the classification or account. Record the amounts in the proper positions in the T accounts. Record the amounts in the order given (letters 'a' through 'n'). Foot the T accounts and show the balances. Cash +  -  Debit Credit                                                                         Bal.         Accounts Payable -  +  Debit Credit                                     Bal.   Accounts Receivable -  +  Debit Credit         Bal.         S. Marion, Capital -  +  Debit Credit             Bal.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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S. Marion, a speech therapist, opened a clinic in the name of Marion Clinic. Her accountant prepared the following chart of accounts:

Assets Revenue
Cash Professional Fees
Accounts Receivable  
Office Equipment Expenses
Office Furniture Salary Expense
  Rent Expense
Liabilities Utilities Expense
Accounts Payable Miscellaneous Expense
   
Owner's Equity  
S. Marion, Capital  
S. Marion, Drawing  

The following transactions occurred during June of this year:

  1. Marion deposited $46,000 in a bank account in the name of the business.
  2. Bought waiting room chairs and tables (Office Furniture) on account, $1,500.
  3. Bought a fax/copier/scanner combination (Office Equipment) from Max's Equipment for $1,000, paying $395 in cash and placing the balance on account, Ck. No. 1001.
  4. Bought an intercom system (Office Equipment) on account from Regan Office Supply, $550.
  5. Received and paid the telephone bill, $220, Ck. No. 1002.
  6. Sold professional services on account, $1,764.
  7. Received and paid the electric bill, $150, Ck. No. 1003.
  8. Received and paid the bill for the state speech therapy convention, $600, Ck. No. 1004 (Miscellaneous Expense).
  9. Sold professional services for cash, $3,510.
  10. Paid on account to Regan Office Supply, $330, Ck. No. 1005.
  11. Paid the rent for the current month, $900, Ck. No. 1006.
  12. Paid salary of the receptionist, $940, Ck. No. 1007.
  13. Marion withdrew cash for personal use, $800, Ck. No. 1008.
  14. Received $800 on account from patients who were previously billed.

Required:

  1. Under each of the following T accounts, select either a plus or minus sign on the left side to indicate whether a Debit increases or decreases the classification or account and select either a plus or minus sign on the right side to indicate whether a credit increases or decreases the classification or account.
  2. Record the amounts in the proper positions in the T accounts. Record the amounts in the order given (letters 'a' through 'n').
  3. Foot the T accounts and show the balances.
Cash
Debit Credit
       
       
       
       
       
       
       
       
       
Bal.      
 
Accounts Payable
Debit Credit
       
       
       
       
    Bal.  

Accounts Receivable
Debit Credit
       
Bal.      
 
S. Marion, Capital
Debit Credit
       
    Bal.  
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