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 4PB
On July 1, K. Resser opened Resser’s Business Services. Resser’s accountant listed the following chart of accounts:
The following transactions were completed during July:
- a. Resser deposited $25,000 in a bank account in the name of the business.
- b. Bought tables and chairs for cash, $725, Ck. No. 1200.
- c. Paid the rent for the current month, $1,750, Ck. No. 1201.
- d. Bought computers and copy machines from Ferber Equipment, $15,700, paying $4,000 in cash and placing the balance on account, Ck. No. 1202.
- e. Bought supplies on account from Wiggins’s Distributors, $535.
- f. Sold services for cash, $1,742.
- g. Bought insurance for one year, $1,375, Ck. No. 1203.
- h. Paid on account to Ferber Equipment, $700, Ck. No. 1204.
- i. Received and paid the electric bill, $438, Ck. No. 1205.
- j. Paid on account to Wiggins’s Distributors, $315, Ck. No. 1206.
- k. Sold services to customers for cash for the second half of the month, $820.
- l. Received and paid the bill for the business license, $75, Ck. No. 1207.
- m. Paid wages to an employee, $1,200, Ck. No. 1208.
- n. Resser withdrew cash for personal use, $700, Ck. No. 1209.
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 July 31, 20--. - 6. Prepare an income statement for July 31, 20--.
- 7. Prepare a statement of owner’s equity for July 31, 20--.
- 8. Prepare a
balance sheet as of July 31, 20--. LO 1, 2, 3, 4, 5, 6
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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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