Question

Problem 3.4A (Static) Using T accounts to record all business transactions. LO 3-1, 3-2, 3-4

The following accounts and transactions are for Vincent Sutton, Landscape Consultant.

Transactions:

1. Sutton invested $90,000 in cash to start the business.
2. Paid $6,000 for the current month’s rent.
3. Bought office furniture for $10,580 in cash.
4. Performed services for $8,200 in cash.
5. Paid $1,250 for the monthly telephone bill.
6. Performed services for $14,000 on credit.
7. Purchased a computer and copier for $18,000; paid $7,200 in cash immediately with the balance due in 30 days.
8. Received $7,000 from credit clients.
9. Paid $2,800 in cash for office cleaning services for the month.
10. Purchased additional office chairs for $5,800; received credit terms of 30 days.
11. Purchased office equipment for $22,000 and paid half of this amount in cash immediately; the balance is due in 30 days.
12. Issued a check for $9,400 to pay salaries.
13. Performed services for $14,500 in cash.
14. Performed services for $16,000 on credit.
15. Collected $8,000 on accounts receivable from charge customers.
16. Issued a check for $2,900 in partial payment of the amount owed for office chairs.
17. Paid $725 to a duplicating company for photocopy work performed during the month.
18. Paid $1,280 for the monthly electric bill.
19. Sutton withdrew $5,500 in cash for personal expenses.

Post the above transactions into the appropriate T accounts.

Analyze:
What liabilities does the business have after all transactions have been recorded?

Complete this question by entering your answers in the tabs below.

• Transactions
• Analyze

Post the above transactions into the appropriate T accounts.

	Cash Accounts Receivable Bal. Bal. Office Furniture Office Equipment Bal. Bal. Accounts Payable Vincent Sutton, Capital Bal. Bal. Vincent Sutton, Drawing Fees Income Bal. Bal. Rent Expense Utilities Expense Bal. Bal. Salaries Expense Telephone Expense Bal. Bal. Miscellaneous Expense Bal.

• Complete this question by entering your answers in the tabs below.

• What liabilities does the business have after all transactions have been recorded?

  	Liabilities

Answer 1

Cash
Capital	90000	Rent	6000
Fees Income	8200	Office Furniture	10580
Account Receviables	7000	Telephone	1250
Fees Income	14500	Office Equipments	7200
Account Receviables	8000	Utilities Expenses	2800
		Office Equipments	11000
		Salaries	9400
		Accounts Payable	2900
		Misc Expenses	725
		Utilities Expenses	1280
		Vincent Sutton, Drawing	5500
		Closing Balance	69065
	127700		127700

Account Receviables
Fees Income	14000	Cash	7000
Fees Income	16000	Cash	8000
		Closing Balance	15000
	30000		30000
Office Furniture
Cash	10580
Accounts Payable	5800	Closing Balance	16380
	16380		16380

Office Equipments
Cash	7200
Accounts Payable	10800
Cash	11000
Accounts Payable	11000	Closing Balance	40000
	40000		40000

Accounts Payable
Cash	2900	Office Equipments	10800
		Office Furniture	5800
Closing Balance	24700	Office Equipments	11000
	27600		27600

Vincent Sutton, Capital
Closing Balance	90000	Cash	90000
	90000		90000
Vincent Sutton, Drawing
Cash	5500	Closing Balance	5500
	5500		5500

Fees Income
Closing Balance	52700	Cash	8200
		Account Receviables	14000
		Cash	14500
		Account Receviables	16000
	52700		52700

Rent Expenses
Cash	6000	Closing Balance	6000
	6000		6000

Utilities Expenses
Cash	2800	Closing Balance	4080
Cash	1280
	4080		4080
Utilities Expenses
Cash	2800	Closing Balance	4080
Cash	1280
	4080		4080

Salaries
Cash	9400	Closing Balance	9400
	9400		9400
Telephone
Cash	1250	Closing Balance	1250
	1250		1250

Misc Expenses
Cash	725	Closing Balance	725
	725		725

Liabilities after these transactions :

$ 24,700 payables for office furniture and Equipments.