Question

Assignment 2.2 Handout

1. The following transactions occurred for Lawrence Engineering:

Jul. 2 Received $14,000 contribution from Brett Lawrence, owner, in exchange for capital.

4 Paid utilities expense of $370.

5 Purchased equipment on account, $1,600.

10 Performed services for a client on account, $2,900.

12 Borrowed $7,100 cash, signing a notes payable.

19 The owner, Brett Lawrence, withdrew $200 cash from the business.

21 Purchased office supplies for $840 and paid cash.

27 Paid the liability from July 5 .

Requirements:

R1. Open the following T-accounts for Lawrence Engineering: Cash; Accounts Receivable; Office Supplies; Equipment; Accounts Payable; Notes Payable; Lawrence, Capital; Lawrence, Withdrawals; Service Revenue; and Utilities Expense.

R2. Post the journal entries to the T-accounts. Also transfer the dates to the Taccounts.

R3. Compute the July 31 balance for each account.

Answer 1

Cash					Accounts Receivable
Jul. 2	14000	370	Jul. 4		Jul. 10	2900
Jul. 12	7100	200	Jul. 19
		840	Jul. 21
		1600	Jul. 27
Jul. 31 bal.	18090				Jul. 31 bal.	2900
Office Supplies					Equipment
Jul. 21	840				Jul. 5	1600
Jul. 31 bal.	840				Jul. 31 bal.	1600
Accounts Payable					Notes Payable
Jul. 27	1600	1600	Jul. 5				7100	Jul. 12
Jul. 31 bal.		0			Jul. 31 bal.		0
Lawrence, Capital					Lawrence, Withdrawals
		14000	Jul. 2		Jul. 19	200
Jul. 31 bal.		14000			Jul. 31 bal.	200
Service Revenue					Utilities Expense
		2900	Jul. 10		Jul. 4	370
Jul. 31 bal.		2900			Jul. 31 bal.	370