College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
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Textbook Question
Chapter 1, Problem 3PA
S. Davis, a graphic artist, opened a studio for her professional practice on August 1. The account headings are presented below. Transactions completed during the month follow.
- a. Davis deposited $20,000 in a bank account in the name of the business.
- b. Bought office equipment on account from Starkey Equipment Company, $4,120.
- c. Davis invested her personal photographic equipment, $5,370. (Increase the account Photo Equipment and increase the account S. Davis, Capital.)
- d. Paid the rent for the month, $1,500, Ck. No. 1000 (Rent Expense).
- e. Bought supplies for cash, $215, Ck. No. 1001.
- f. Bought insurance for two years, $1,840, Ck. No. 1002.
- g. Sold graphic services for cash, $3,616 (Professional Fees).
- h. Paid the salary of the part-time assistant, $982, Ck. No. 1003 (Salary Expense).
- i. Received and paid the bill for telephone service, $134, Ck. No. 1004 (Telephone Expense).
- j. Paid cash for minor repairs to graphics equipment, $185, Ck. No. 1005 (Repair Expense).
- k. Sold graphic services for cash, $3,693 (Professional Fees).
- l. Paid on account to Starkey Equipment Company, $650, Ck. No. 1006.
- m. Davis withdrew cash for personal use, $1,800, Ck. No. 1007.
Required
- 1. In the equation, write the owner’s name above the terms Capital and Drawing.
- 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses.
- 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.
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Chapter 1 Solutions
College Accounting (Book Only): A Career Approach
Ch. 1 - Prob. 1QYCh. 1 - Prob. 2QYCh. 1 - Which of the following accounts would increase...Ch. 1 - Which of the following statements is true? a....Ch. 1 - M. Parish purchased supplies on credit. What is...Ch. 1 - Define assets, liabilities, owners equity,...Ch. 1 - Prob. 2DQCh. 1 - How do Accounts Payable and Accounts Receivable...Ch. 1 - Describe two ways to increase owners equity and...Ch. 1 - What is the effect on the fundamental accounting...
Ch. 1 - When an owner withdraws cash or goods from the...Ch. 1 - Define chart of accounts and identify the...Ch. 1 - What account titles would you suggest for the...Ch. 1 - Prob. 1ECh. 1 - Determine the following amounts: a. The amount of...Ch. 1 - Dr. L. M. Patton is an ophthalmologist. As of...Ch. 1 - Describe a business transaction that will do the...Ch. 1 - Describe a transaction that resulted in each of...Ch. 1 - Label each of the following accounts as asset (A),...Ch. 1 - Describe a transaction that resulted in the...Ch. 1 - Describe the transactions that are recorded in the...Ch. 1 - On June 1 of this year, J. Larkin, Optometrist,...Ch. 1 - On July 1 of this year, R. Green established the...Ch. 1 - S. Davis, a graphic artist, opened a studio for...Ch. 1 - On March 1 of this year, B. Gervais established...Ch. 1 - In April, J. Rodriguez established an apartment...Ch. 1 - Prob. 1PBCh. 1 - In March, K. Haas, M.D., established the Haas...Ch. 1 - Prob. 3PBCh. 1 - In March, T. Carter established Carter Delivery...Ch. 1 - In October, A. Nguyen established an apartment...Ch. 1 - Why Does It Matter? MACS CUSTOM CATERING, Eugene,...Ch. 1 - What Would You Say? A friend of yours wants to...Ch. 1 - Prob. 3A
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