Chapter 2, Problem 3PA

S. Myers, a speech therapist, opened a clinic in the name of Myers Clinic. Her accountant prepared the following chart of accounts:

The following transactions occurred during June of this year:

1. a. Myers deposited $40,000 in a bank account in the name of the business.
2. b. Bought waiting room chairs and tables on account, $1,330.
3. c. Bought a fax/copier/scanner combination from Max’s Equipment for $595, paying $200 in cash and placing the balance on account, Ck. No. 1001.
4. d. Bought an intercom system on account from Regan Office Supply, $375.
5. e. Received and paid the telephone bill, $155, Ck. No. 1002.
6. f. Sold professional services on account, $1,484.
7. g. Received and paid the electric bill, $190, Ck. No. 1003.
8. h. Received and paid the bill for the state speech therapy convention, $450, Ck. No. 1004.
9. i. Sold professional services for cash, $2,575.
10. j. Paid on account to Regan Office Supply, $300, Ck. No. 1005.
11. k. Paid the rent for the current month, $940, Ck. No. 1006.
12. l. Paid salary of the receptionist, $880, Ck. No. 1007.
13. m. Myers withdrew cash for personal use, $800, Ck. No. 1008.
14. n. Received $885 on account from patients who were previously billed.

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 as of June 30, 20--.
6. 6. Prepare an income statement for June 30, 20--.
7. 7. Prepare a statement of owner’s equity for June 30, 20--.
8. 8. Prepare a balance sheet as of June 30, 20--.