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 2, Problem 2PB
J. Carrie established Carrie’s Photo Tours during June of this year. The accountant prepared the following chart of accounts:
The following transactions occurred during the month of June:
- a. Carrie deposited $30,000 cash in a bank account in the name of the business.
- b. Bought office equipment for cash, $1,850, Ck. No. 1001
- c. Bought computer software from Morey’s Computer Center, $640, paying $350 in cash and placing the balance on account, Ck. No. 1002.
- d. Paid current month’s rent, $950, Ck. No. 1003.
- e. Sold services for cash, $1,575.
- f. Bought a neon sign from The Sign Company, $1,335, paying $435 in cash and placing the balance on account, Ck. No. 1004.
- g. Received bill from The Gossiper for advertising, $445.
- h. Bought supplies on account from City Supply, $460.
- i. Received and paid the electric bill, $380, Ck. No. 1005.
- j. Paid on account to The Gossiper, $245, Ck. No. 1006.
- k. Sold services for cash, $3,474.
- l. Paid wages to an employee, $930, Ck. No. 1007.
- m. Carrie invested his personal computer with a fair market value of $1,000 in the business.
- n. Carrie withdrew cash for personal use, $800, Ck. No. 1008.
- o. Received and paid the bill for city business license, $75, Ck. No. 1009.
Required
- 1. Record the owner’s name in the Capital and Drawing T accounts.
- 2. Correctly place the plus and minus signs for each T account and label the debit and credit sides of the accounts.
- 3. Record the transactions in the T accounts. Write the letter of each entry to identify the transaction.
- 4. Foot the T accounts and show the balances.
- 5. Prepare a
trial balance , with a three-line heading, dated June 30, 20--.
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Chapter 2 Solutions
College Accounting (Book Only): A Career Approach
Ch. 2 - Determine the balance of the following T account:
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