Question

Entries into accounts and Trial Balance Ken Jones, an architect, organized Jones Architects on April 1, 2018. During the month, Jones Architects completed the following transactions: a. Transferred cash from a personal bank account to an account to be used for the business in exchange for Common Stock, $18,000. b. Purchased used automobile for $19,500, paying $2,500 cash and giving a note payable for the remainder. c. Pald Aprilrent for office and workroom, $3,150. d. Paid cash for supplies, $1,450. e. Purchased office and computer equipment on account, $6,500 1. Paid cash for annual Insurance policies on automobile and equipment, $2,400. 9. Received cash from a client for plans delivered, $12,000 h. Paid cash to creditors on account, $1,800. Paid cash for miscellaneous expenses, $375. J. Received invoice for blueprint service, due in May, $2,500 k. Recorded fees earned on plans delivered, payment to be received in May, $15,650. Paid salary of assistant, $2,800. m. paid cash for miscellaneous expenses, $200. n. Paid installment due on note payable, $300. o. Paid gas, oil, and repairs on automobile for April, 5550 Required: 1. Record the above transactions in chronological order) directly in the following accounts, without journaling Cash, Accounts Receivable Supplies, Prepaid Insurance, Automobiles, Equipment, Notes Payable, Accounts Payable, Common Stock, Professional Pees, Rent Expense, Salary Expense, Blueprint Expense, Automobile Expense, Miscellaneous Expense. To the le of each amount entered in the accounts, select the appropriate letter to identify the transaction 2. Determine account balances of the accounts, Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance

Answer 1

1&2.		Cash
	Ref.	Debit	Ref.	Credit
	a.	18000	b.	2500
	g.	12000	c.	3150
			d.	1450
			f.	2400
			h.	1800
			i.	375
			l.	2800
			m.	200
			n.	300
			o.	550
		30000		15525
	Bal.	14475
		Accounts receivable
	Ref.	Debit	Ref.	Credit
	k.	15650
		Supplies
	Ref.	Debit	Ref.	Credit
	d.	1450
		Prepaid insurance
	Ref.	Debit	Ref.	Credit
	f.	2400
		Automobiles
	Ref.	Debit	Ref.	Credit
	b.	19500
		Equipment
	Ref.	Debit	Ref.	Credit
	e.	6500
		Notes payable
	Ref.	Debit	Ref.	Credit
	n.	300	b.
			(19500-2500)	17000
		300		17000
			Bal.	16700
		Accounts payable
	Ref.	Debit	Ref.	Credit
	h.	1800	e.	6500
			j.	2500
		1800		9000
			Bal.	7200
		Common stock
	Ref.	Debit	Ref.	Credit
			a.	18000
		Professional fees
	Ref.	Debit	Ref.	Credit
			g.	12000
			k.	15650
		0		27650
			Bal.	27650
		Rent expense
	Ref.	Debit	Ref.	Credit
	c.	3150
		Salary expense
	Ref.	Debit	Ref.	Credit
	l.	2800
		Blueprint expense
	Ref.	Debit	Ref.	Credit
	j.	2500
		Automobile expense
	Ref.	Debit	Ref.	Credit
	o.	550
		Miscellaneous expense
	Ref.	Debit	Ref.	Credit
	i.	375
	m.	200
		575		0
	Bal.	575