Question

Problem 3.5A (Static) Preparing financial statements from T accounts. LO 3-3, 3-5, 3-6 The accountant for the firm owned by Vincent Sutton prepares financial statements at the end of each month. fransactions: a. Sutton invested $90,000 in cash to start the business. b. Paid $6,000 for the current month's rent. C. Bought office furniture for $10,580 in cash. d. Performed services for $8,200 in cash. e. Paid $1,250 for the monthly telephone bill. f. Performed services for $14,000 on credit. g. Purchased a computer and copier for $18,000; paid $7,200 in cash immediately with the balance due in 30 days. h. Received $7,000 from credit clients. i. Paid $2,800 in cash for office cleaning services for the month. J. Purchased additional office chairs for $5,800; received credit terms of 30 days. k. Purchased office equipment for $22,000 and paid half of this amount in cash immediately: the balance is due in 30 days. I. Issued a check for $9.400 to pay salaries. n. Performed services for $14,500 in cash. n. Performed services for $16,000 on credit. o. Collected $8,000 on accounts receivable from charge customers. p. Issued a check for $2,900 in partial payment of the amount owed for office chairs. q. Paid $725 to a duplicating company for photocopy work performed during the month. r. Paid $1,280 for the monthly electric bill. s. Sutton withdrew $5,500 in cash for personal expenses.

Answer 1

		Amount in $
Trial Balance
Particulars	Debit	Credit
Cash	69,065
Vincent sutton, capital		90,000
Rent expense	6,000
Office furniture	10,580
Service revenue		52,700
Telephone expense	1,250
Office cleaning expense	2,800
Accounts Receivable	15,000
Computer and copier	18,000
Accounts Payable		24,700
Office Chairs	5,800
Office equipment	22,000
Salaries expense	9,400
Photocopy expenses	725
Utility expense	1,280
Vincent sutton , Drawings	5,500
Total	167,400	167,400
Income Statement
June 30, 20X1
Revenues :
Service Revenue		52,700
Less: Expenses
Rent Expenses	6,000
Telephone Expense	1,250
Office Cleaning expense	2,800
Salaries expense	9,400
Photocopy expense	725
Utility expense	1,280
Total expenses		21,455
Net Income		31,245
Statement of Owners equity
June 30,20X1
Beginning Blanace		-
Add: Captial introduced		90,000
Add: Net income		31,245
Less: Withdrawal		5,500
Closing Balance		115,745
Balance sheet as on June 30, 20X1
Current Assets
Cash	69,065
Accounts Receivables	15,000
		84,065
Non - Currrent Assets
Office Furniture	16,380
Office Equipment	40,000
		56,380
Total Assets		140,445
Liabilities & Owners Equity
Current Liabilities
Accounts payable		24,700
Owner's Equity
Vincent Sutton Capital	115,745
Total Owners Capital		115,745
Total Liabilities & owners's Equity		140,445
Owners Equity increased by $1,15,745