Chapter 2, Problem 2PA

B. Kelso established Computer Wizards during November of this year. The accountant prepared the following chart of accounts:

The following transactions occurred during the month:

1. a. Kelso deposited $45,000 in a bank account in the name of the business.
2. b. Paid the rent for the current month, $1,800, Ck. No. 2001.
3. c. Bought office desks and filing cabinets for cash, $790, Ck. No. 2002.
4. d. Bought a computer and printer from Cyber Center for use in the business, $2,700, paying $1,700 in cash and placing the balance on account, Ck. No. 2003.
5. e. Bought a neon sign on account from Signage Co., $1,350.
6. f. Kelso invested her personal computer software with a fair market value of $600 in the business.
7. g. Received a bill from Country News for newspaper advertising, $365.
8. h. Sold services for cash, $1,245.
9. i. Received and paid the electric bill, $345, Ck. No. 2004.
10. j. Paid on account to Country News, a creditor, $285, Ck. No. 2005.
11. k. Sold services for cash, $1,450.
12. l. Paid wages to an employee, $925, Ck. No. 2006.
13. m. Received and paid the bill for the city business license, $75, Ck. No. 2007.
14. n. Kelso withdrew cash for personal use, $850, Ck. No. 2008.
15. o. Kelso withdrew cash for personal use, $850, Ck. No. 2008.

Required

1. 1. Record the owner’s name in the Capital and Drawing T accounts.
2. 2. Correctly place the plus and minus signs for each T account and label the debit and credit sides of the accounts.
3. 3. Record the transactions in T accounts. Write the letter of each entry to identify the transaction.
4. 4. Foot the T accounts and show the balances.
5. 5. Prepare a trial balance, with a three-line heading, dated November 30, 20--.