Chapter 1, Problem 1PA

On June 1 of this year, J. Larkin, Optometrist, established the Larkin Eye Clinic. The clinic’s account names are presented below. Transactions completed during the month follow.

1. a. Larkin deposited $25,000 in a bank account in the name of the business.
2. b. Paid the office rent for the month, $950, Ck. No. 1001.
3. c. Bought supplies for cash, $357, Ck. No. 1002.
4. d. Bought office equipment on account from NYC Office Equipment Store, $8,956.
5. e. Bought a computer from Warden’s Office Outfitters, $1,636, paying $750 in cash and placing the balance on account, Ck. No. 1003.
6. f. f. Sold professional services for cash, $3,482.
7. g. Paid on account to Warden’s Office Outfitters, $886, Ck. No. 1004.
8. h. Received and paid the bill for utilities, $382, Ck. No. 1005.
9. i. Paid the salary of the assistant, $1,050, Ck. No. 1006.
10. j. Sold professional services for cash, $3,295.
11. k. Larkin withdrew cash for personal use, $1,250, Ck. No. 1007.

Required

1. 1. Record the transactions and the balance after each transaction.
2. 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.