Transactions Sara - Jayne Parsons invested $20,000 in cash to start the business. Paid $2,000 for advertisements in a design magazine. Purchased furniture for $5,300 in cash. Performed services for $7,050 in cash. Paid $260 for the monthly telephone bill. Performed services for $1,760 on credit. Purchased equipment, a fax machine, for $575; paid $75 in cash, with the balance due in 30 days. Paid a bill for $650 from the office cleaning service (debit miscellaneous expense). Received $1,740 from clients on account. Purchased furniture (office chairs) for $645; received credit terms of 30 days. Paid $5,000 for salaries. Issued a check for $275 in partial payment of the amount owed for furniture (office chairs). Received $2,500 in cash for services performed. Issued a check for $560 for utilities expense. Performed services for $2,250 on credit. Collected $1,000 from clients on account. Sara - Jayne Parsons withdrew $2,600 in cash for personal expenses. Paid $700 to Quick Copy for photocopy work performed during the month (debit miscellaneous expense). (Hint: Include office cleaning services and photocopy expenses under "Miscellaneous Expense".) Required: (1) Post the above transactions into the appropriate T accounts. (2) Determine the account balances. Prepare a trial balance, an income statement, a statement of owner's equity, and a balance sheet for Sara - Jayne Parsons, Architect.
Transactions Sara - Jayne Parsons invested $20,000 in cash to start the business. Paid $2,000 for advertisements in a design magazine. Purchased furniture for $5,300 in cash. Performed services for $7,050 in cash. Paid $260 for the monthly telephone bill. Performed services for $1,760 on credit. Purchased equipment, a fax machine, for $575; paid $75 in cash, with the balance due in 30 days. Paid a bill for $650 from the office cleaning service (debit miscellaneous expense). Received $1,740 from clients on account. Purchased furniture (office chairs) for $645; received credit terms of 30 days. Paid $5,000 for salaries. Issued a check for $275 in partial payment of the amount owed for furniture (office chairs). Received $2,500 in cash for services performed. Issued a check for $560 for utilities expense. Performed services for $2,250 on credit. Collected $1,000 from clients on account. Sara - Jayne Parsons withdrew $2,600 in cash for personal expenses. Paid $700 to Quick Copy for photocopy work performed during the month (debit miscellaneous expense). (Hint: Include office cleaning services and photocopy expenses under "Miscellaneous Expense".) Required: (1) Post the above transactions into the appropriate T accounts. (2) Determine the account balances. Prepare a trial balance, an income statement, a statement of owner's equity, and a balance sheet for Sara - Jayne Parsons, Architect.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Transactions Sara - Jayne Parsons invested $20,000 in cash to start the business. Paid $2,000 for
advertisements in a design magazine. Purchased furniture for $5,300 in cash. Performed services for $7,050
in cash. Paid $260 for the monthly telephone bill. Performed services for $1,760 on credit. Purchased
equipment, a fax machine, for $575; paid $75 in cash, with the balance due in 30 days. Paid a bill for $650
from the office cleaning service (debit miscellaneous expense). Received $1,740 from clients on account.
Purchased furniture (office chairs) for $645; received credit terms of 30 days. Paid $5,000 for salaries. Issued
a check for $275 in partial payment of the amount owed for furniture (office chairs). Received $2,500 in
cash for services performed. Issued a check for $560 for utilities expense. Performed services for $2,250 on
credit. Collected $1,000 from clients on account. Sara - Jayne Parsons withdrew $2,600 in cash for personal
expenses. Paid $700 to Quick Copy for photocopy work performed during the month (debit miscellaneous
expense). (Hint: Include office cleaning services and photocopy expenses under "Miscellaneous Expense".)
Required: (1) Post the above transactions into the appropriate T accounts. (2) Determine the account
balances. Prepare a trial balance, an income statement, a statement of owner's equity, and a balance sheet
for Sara - Jayne Parsons, Architect.
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