THE SMITH COMPANY Using the business transactions below, complete T-accounts for the Smith Company. I have provided a blank sheet of t-accounts as an attachment to this assignment. The company started business on June 1, 2019. a. John Smith, owner, invested $120,000 cash in the company. b. The company purchased $10,000 of office equipment on credit. c. The company billed a customer $2,000 as fees for services provided. d. The company paid $1,000 cash for the monthly rent. e. The company purchased office supplies for $500 cash. f. The company paid $300 for the utilities for the month. g. The company received $15,000 cash as fees for services provided to a customer. h. The company paid the secretary's salary for the month, $3,000. 1. John Smith withdrew $6,000 cash from the company for personal use. As you work this problem, be sure to label entries with the appropriate "letter" associated with the transaction. Also, be sure to compute the T-account balances when all transactions have been posted to the T-accounts. Use the Chart of Accounts provided for account names. CHART OF ACCOUNTS ASSETS Cash Accounts Receivable EQUITY J. Smith, Capital J. Smith, Drawing EXPENSES Rent Expense Utilities Expense Salary Expense Miscellaneous Expense Office Supplies Office Equipment REVENUES Service Fees Earned LIABILITIES Accounts Payable
THE SMITH COMPANY Using the business transactions below, complete T-accounts for the Smith Company. I have provided a blank sheet of t-accounts as an attachment to this assignment. The company started business on June 1, 2019. a. John Smith, owner, invested $120,000 cash in the company. b. The company purchased $10,000 of office equipment on credit. c. The company billed a customer $2,000 as fees for services provided. d. The company paid $1,000 cash for the monthly rent. e. The company purchased office supplies for $500 cash. f. The company paid $300 for the utilities for the month. g. The company received $15,000 cash as fees for services provided to a customer. h. The company paid the secretary's salary for the month, $3,000. 1. John Smith withdrew $6,000 cash from the company for personal use. As you work this problem, be sure to label entries with the appropriate "letter" associated with the transaction. Also, be sure to compute the T-account balances when all transactions have been posted to the T-accounts. Use the Chart of Accounts provided for account names. CHART OF ACCOUNTS ASSETS Cash Accounts Receivable EQUITY J. Smith, Capital J. Smith, Drawing EXPENSES Rent Expense Utilities Expense Salary Expense Miscellaneous Expense Office Supplies Office Equipment REVENUES Service Fees Earned LIABILITIES Accounts Payable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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It’s so difficult trying to understand how to key in the numbers because understanding the sentences gets me off track . Can you help me and give me an example on what strategies you use to learn better and faster .
Transcribed Image Text:THE SMITH COMPANY
Using the business transactions below, complete T-accounts for the Smith Company. I have provided
a blank sheet of t-accounts as an attachment to this assignment. The company started business on
June 1, 2019.
a. John Smith, owner, invested $120,000 cash in the company.
b. The company purchased $10,000 of office equipment on credit.
c. The company billed a customer $2,000 as fees for services provided.
d. The company paid $1,000 cash for the monthly rent.
e. The company purchased office supplies for $500 cash.
f. The company paid $300 for the utilities for the month.
The company received $15,000 cash as fees for services provided to a customer.
g.
h. The company paid the secretary's salary for the month, $3,000.
i. John Smith withdrew $6,000 cash from the company for personal use.
As you work this problem, be sure to label entries with the appropriate "letter" associated with the
transaction. Also, be sure to compute the T-account balances when all transactions have been
posted to the T-accounts. Use the Chart of Accounts provided for account names.
CHART OF ACCOUNTS
ASSETS
Cash
Accounts Receivable
Office Supplies
Office Equipment
EQUITY
J. Smith, Capital
J. Smith, Drawing
EXPENSES
Rent Expense
Utilities Expense
Salary Expense
Miscellaneous Expense
REVENUES
Service Fees Earned
LIABILITIES
Accounts Payable
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