College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Textbook Question
Chapter 2, Problem 4PA
On May 1, B. Bangle opened Self-Wash Laundry. His accountant listed the following chart of accounts:
The following transactions were completed during May:
- a. Bangle deposited $35,000 in a bank account in the name of the business.
- b. Bought chairs and tables, paying cash, $1,870, Ck. No. 1000.
- c. Bought supplies on account from Barnes Supply Company, $225.
- d. Paid the rent for the current month, $875, Ck. No. 1001.
- e. Bought washing machines and dryers from Lara Equipment Company, $12,500, paying $3,600 in cash and placing the balance on account, Ck. No. 1002.
- f. Sold services for cash for the first half of the month, $1,925.
- g. Bought insurance for one year, $1,560, Ck. No. 1003.
- h. Paid on account to Lara Equipment Company, $1,800, Ck. No. 1004.
- i. Received and paid electric bill, $285, Ck. No. 1005.
- j. Sold services for cash for the second half of the month, $1,835.
- k. Paid wages to an employee, $940, Ck. No. 1006.
- l. Bangle withdrew cash for his personal use, $800, Ck. No. 1007.
- m. Paid on account to Barnes Supply Company, $225, Ck. No. 1008.
- n. Received and paid bill from the county for sidewalk repair assessment, $280, 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 as of May 31, 20--. - 6. Prepare an income statement for May 31, 20--.
- 7. Prepare a statement of owner’s equity for May 31, 20--.
- 8. Prepare a balance sheet as of May 31, 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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