Question

SERIES A PROBLEMS (LO2/4/5) after (pl: $21,805 (Dr.) total debits: $44,900 T ACCOUNTS AND TRIAL BALANCE Wilhelm Kohl started a business in May 20-- called Kohl's Home Repair. Kohl hired a part-time college student as an assistant. Kohl has decided to use the following accounts for recording transactions: Assets Owner's Equity Cash Wilhelm Kohl, Capital Accounts Receivable Wilhelm Kohl, Drawing Office Supplies Revenue Prepaid Insurance Service Fees Equipment Expenses Van Rent Expense Liabilities Wages Expense Accounts Payable Phone Expense Gas and Oil Expense The following transactions occurred during May: (a) Invested cash in the business, $25,000. (b) Purchased a used van for cash, $6,000. (c) Purchased equipment on account, $4,000. (d) Received cash for services rendered, $7,500. (e) Paid cash on account owed from transaction (c), $2,300. (f) Paid rent for the month, $850. (g) Paid phone bill, $230. (h) Earned revenue on account, $4,500. (i) Purchased office supplies for cash, $160. () Paid wages to an assistant, $800. (k) Purchased a one-year insurance policy, $1,100. (1) Received cash from services performed in transaction (h), $3,400. (m) Paid cash for gas and oil expense on the van, $155. (n) Purchased additional equipment for $4,200, paying $1,500 cash and spreading the remaining payments over the next 10 months. (o) Earned service fees for the remainder of the month of $3,500: $1,900 in cash and $1,600 on account. (p) Withdrew cash at the end of the month, $2,900.

Answer 1

T-Accounts:

Cash
a	$ 25,000	b	$    6,000
d	$    7,500	e	$    2,300
l	$    3,400	f	$        850
o	$    1,900	g	$        230
		i	$        160
		j	$        800
		k	$    1,100
		m	$        155
		n	$    1,500
End Balance	$ 21,805	p	$    2,900
Wilhelm Kohl, Capital
		a	$ 25,000
		End Balance	$ 25,000
Van
b	$    6,000
End Balance	$    6,000
Equipment
c	$    4,000
n	$    4,200
End Balance	$    8,200
Accounts Receivables
h	$    4,500	l	$    3,400
o	$    1,600
End Balance	$    2,700
Service Revenue
		d	$    7,500
		h	$    4,500
		o	$    3,500
		End Balance	$ 15,500
Office Supplies
i	$        160
End Balance	$        160
Accounts Payable
e	$    2,300	c	$    4,000
		n	$    2,700
		End Balance	$    4,400
Rent Expense
f	$        850
End Balance	$        850
Phone Expense
g	$        230
End Balance	$        230
Wages Expense
j	$        800
End Balance	$        800
Prepaid Insurance
k	$    1,100
End Balance	$    1,100
Gas and Oil Expense
m	$        155
End Balance	$        155
Wilhelm Kohl, Drawings
p	$    2,900
End Balance	$    2,900

Trial Balance:

Kohl`s Home Repair
Unadjusted Trial Balance
May. 2020
Account title	Debit	Credit
Cash	$ 21,805	$           -
Accounts Receivable	$    2,700	$           -
Office Supplies	$        160	$           -
Prepaid Rent	$    1,100	$           -
Van	$    6,000	$           -
Equipment	$    8,200	$           -
Accounts Payable	$           -	$    4,400
Wilhelm Kohl, Capital	$           -	$ 25,000
Wilhelm Kohl, Drawings	$    2,900	$           -
Service fees	$           -	$ 15,500
Rent Expense	$        850	$           -
Phone Expense	$        230	$           -
Wages Expense	$        800	$           -
Gas and Oil Expense	$        155	$           -
Total	$ 44,900	$ 44,900