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:

1. a. Carrie deposited $30,000 cash in a bank account in the name of the business.
2. b. Bought office equipment for cash, $1,850, Ck. No. 1001
3. c. Bought computer software from Morey’s Computer Center, $640, paying $350 in cash and placing the balance on account, Ck. No. 1002.
4. d. Paid current month’s rent, $950, Ck. No. 1003.
5. e. Sold services for cash, $1,575.
6. f. Bought a neon sign from The Sign Company, $1,335, paying $435 in cash and placing the balance on account, Ck. No. 1004.
7. g. Received bill from The Gossiper for advertising, $445.
8. h. Bought supplies on account from City Supply, $460.
9. i. Received and paid the electric bill, $380, Ck. No. 1005.
10. j. Paid on account to The Gossiper, $245, Ck. No. 1006.
11. k. Sold services for cash, $3,474.
12. l. Paid wages to an employee, $930, Ck. No. 1007.
13. m. Carrie invested his personal computer with a fair market value of $1,000 in the business.
14. n. Carrie withdrew cash for personal use, $800, Ck. No. 1008.
15. o. Received and paid the bill for city business license, $75, Ck. No. 1009.

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 the 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 June 30, 20--.