Question

Ken Jones, an architect, organized Jones Architects on April 1, 20Y2. During the month, Jones Architects completed the following transactions: a. Transferred cash from a personal bank account to an account to be used for the business in exchange for Common Stock, $39,200. b. Purchased used automobile for $25,000, paying $5,900 cash and giving a note payable for the remainder. c. Paid April rent for office and workroom, $3,900. d. Paid cash for supplies, $1,880. e. Purchased office and computer equipment on account, $7,800. f. Paid cash for annual insurance policies on automobile and equipment, $2,600. g. Received cash from a client for plans delivered, $9,800. h. Paid cash to creditors on account, $2,270. i. Paid cash for miscellaneous expenses, $375. j. Received invoice for blueprint service, due in May, $1,300. k. Recorded fees earned on plans delivered, payment to be received in May, $6,800. I. Paid salary of assistant, $2,100. m. Paid cash for miscellaneous expenses, $1,060. n. Paid installment due on note payable, $310. o. Paid gas, oil, and repairs on automobile for April, $510.

Answer 1

(182) tas igs Cash $39,200 $ 9,800 Equipment $7,800 lies (b) $ 5,900 $3,900 sds $ 1,880 of $2,600 ch $2,270 i $375 il $ 2,100 (m, $ 1,060 $ 310 o $ 510 Notes kayable Jeh, $310 ib Bal $ 18,790 رط $ 19,100 10) Bali $ 28,095 Accounts payable h $2,270 (e, & 7,800 () & 1,300 Bal. $ 6,830 Accounts Receivable cks $ 6,800 Common stock 19, $39, 200 supplies $ 1,880 (d, Professional fees $ 9,800 ik, $ 6,800 Bal. $ 16,600 | lebs Prepaid Insurance 1$ 2,600 1 Rent Expense Les $3,900 Automobiles 25,Doo 6, & salary expense . W $2,100

Blueprint Expense - $ 16,600-$3,900- $2,100 - $1,300 - $510 - $1,435) Miscellaneous expense . 1,300 $375 im $ 1,060 Bul. $1,435 Automobile Expense (0) $510 3, Jones Architects Unadjusted Trial Balance April 30, 2012 eredit Debit Balances Balances Cash $ 28,095 Accounts Receivable $ 6,000 Supplies $ 1,880 Prepaid Insurance $ 2,600 Automobiles $ 25,000 Equipment $ 7,800 Accounts Payable $ 6,830 Notes Payable $ 18,790 Common stock $ 39,200 Professional fees $ 16,600 Rent Expense $ 3,900 Salary Expense $ 2,100 Blueprint Expense $ 1,300 Automobile Expense Miscellaneous Expense $ 1,435 1$ 81,420 1$ 81,420 Net Income $7,355 calculation: Net Income = (Professional fees-hent Expense-talary Expense - blueprint Expense - Automobile Expense = $7,355 $ slo - Miscellaneous Expense