The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019. The following transactions are for Randy Guttery, Landscape Consultant. Transactions: Guttery invested $155,000 in cash to start the business. Paid $5,500 for the current month’s rent. Bought office furniture for $16,220 in cash. Performed services for $7,700 in cash. Paid $1,200 for the monthly telephone bill. Performed services for $13,500 on credit. Purchased a computer and copier for $37,000; paid $12,500 in cash immediately with the balance due in 30 days. Received $6,750 from credit clients. Paid $3,500 in cash for office cleaning services for the month. Purchased additional office chairs for $5,300; received credit terms of 30 days. Purchased office equipment for $35,000 and paid half of this amount in cash immediately; the balance is due in 30 days. Issued a check for $8,900 to pay salaries. Performed services for $14,000 in cash. Performed services for $15,500 on credit. Collected $7,500 on accounts receivable from charge customers. Issued a check for $2,650 in partial payment of the amount owed for office chairs. Paid $650 to a duplicating company for photocopy work performed during the month. Paid $1,170 for the monthly electric bill. Guttery withdrew $8,500 in cash for personal expenses. Post the above transactions into the appropriate T accounts. Analyze: What liabilities does the business have after all transactions have been recorded? Please don't provide answer in image format thank you

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019. The following transactions are for Randy Guttery, Landscape Consultant.

Transactions:

Guttery invested $155,000 in cash to start the business.
Paid $5,500 for the current month’s rent.
Bought office furniture for $16,220 in cash.
Performed services for $7,700 in cash.
Paid $1,200 for the monthly telephone bill.
Performed services for $13,500 on credit.
Purchased a computer and copier for $37,000; paid $12,500 in cash immediately with the balance due in 30 days.
Received $6,750 from credit clients.
Paid $3,500 in cash for office cleaning services for the month.
Purchased additional office chairs for $5,300; received credit terms of 30 days.
Purchased office equipment for $35,000 and paid half of this amount in cash immediately; the balance is due in 30 days.
Issued a check for $8,900 to pay salaries.
Performed services for $14,000 in cash.
Performed services for $15,500 on credit.
Collected $7,500 on accounts receivable from charge customers.
Issued a check for $2,650 in partial payment of the amount owed for office chairs.
Paid $650 to a duplicating company for photocopy work performed during the month.
Paid $1,170 for the monthly electric bill.
Guttery withdrew $8,500 in cash for personal expenses.

Post the above transactions into the appropriate T accounts.

Analyze:
What liabilities does the business have after all transactions have been recorded?

Please don't provide answer in image format thank you

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