Chapter 1, Problem 2R

On June 1 of the current year, Wilson Wood opened Woodyʼs Web Services. This sole proprietorship had the following transactions during June.

1. a. Opened a business checking account and made a deposit, $9,000.
2. b. Paid rent for June for office space and computer equipment, $3,000.
3. c. Purchased office supplies (stamps, pens, etc.) on account, $1,980.
4. d. Received cash for services rendered, $4,500.
5. e. Paid creditor for office supplies purchased on account, $1,400.
6. f. Purchased office supplies for cash, $420.
7. g. Billed clients for consultations performed on account, $4,600.
8. h. Paid monthly internet service bill of $360.
9. i. Paid the secretaryʼs salary of $2,400.
10. j. Returned $300 of office supplies purchased in transaction f. Received a full refund.
11. k. Received cash from clients previously billed, $3,000.
12. l. Cash was withdrawn for ownerʼs personal use, $2,000.

Open the file PTRANS from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then enter the increases and decreases resulting from each transaction on the worksheet. For example, the first transaction increases the cash account by $9,000 and also increases the capital account by $9,000. This transaction has already been recorded on the worksheet. The worksheet will automatically total each column as values are entered in that column. Enter negative numbers with a minus sign (–). When you are finished, check row 26 to make sure that total assets equal total liabilities and equity.