Question

Entries into T accounts and Trial Balance

Ken Jones, an architect, organized Jones Architects on April 1, 20Y2. During the month, Jones Architects completed the following transactions:

1. Transferred cash from a personal bank account to an account to be used for the business in exchange for Common Stock, $48,700.
2. Purchased used automobile for $32,000, paying $7,300 cash and giving a note payable for the remainder.
3. Paid April rent for office and workroom, $4,900.
4. Paid cash for supplies, $2,340.
5. Purchased office and computer equipment on account, $9,700.
6. Paid cash for annual insurance policies on automobile and equipment, $3,300.
7. Received cash from a client for plans delivered, $12,200.
8. Paid cash to creditors on account, $2,820.
9. Paid cash for miscellaneous expenses, $375.
10. Received invoice for blueprint service, due in May, $1,600.
11. Recorded fees earned on plans delivered, payment to be received in May, $8,400.
12. Paid salary of assistant, $2,600.
13. Paid cash for miscellaneous expenses, $1,320.
14. Paid installment due on note payable, $390.
15. Paid gas, oil, and repairs on automobile for April, $630.

Required:

1. Record the above transactions (in chronological order) directly in the following T accounts, without journalizing: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Automobiles, Equipment, Notes Payable, Accounts Payable, Common Stock, Professional Fees, Rent Expense, Salary Expense, Blueprint Expense, Automobile Expense, Miscellaneous Expense. To the left of each amount entered in the accounts, select the appropriate letter to identify the transaction.

2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.

Cash
Bal.

Accounts Receivable

Supplies

Prepaid Insurance

Automobiles

Equipment

Notes Payable
		Bal.

Accounts Payable
		Bal.

Common Stock

Professional Fees
		Bal.

Rent Expense

Salary Expense

Blueprint Expense

Automobile Expense

Miscellaneous Expense
Bal.

3. Prepare an unadjusted trial balance for Jones Architects as of April 30, 20Y2. List all accounts in the order of Assets, Liabilities, Stockholders’ equity, Revenues, and Expenses. If an amount box does not require an entry, leave it blank.

Jones Architects
Unadjusted Trial Balance
April 30, 20Y2
	Debit Balances	Credit Balances

4. Determine the net income or net loss for April.
   $

Answer 1

a $ $ ho Cash 48,700 b 12,200 C d f h $ 7,300 $ 4,900 $ 2,340 $ 3,300 $ 2,820 $ 375 $ 2,600 $ 1,320 $ 390 $ 630 i 1 m n o Bal $ 34,925 k Bal Account recievable $ 8,400 $ 8,400 d $ $ Supplies 2,340 2,340 Bal f Bal Prepaid Insurance $ 3,300 $ 3,300

b Bal $ $ Automobiles 32,000 32,000 (D $ $ Equipment 9,700 9,700 Bal n $ Note payable 390 b Bal $ 24,700 $ 24,310 h $ Account payable 2,820 e j $ 9,700 $ 1,600 $ 8,480 Bal Common stock a $ 48,700 $ 48,700 Bal Professional fees 09 k Bal $ 12,200 $ 8,400 $ 20,600

с $ $ Rent expense 4,900 4,900 Bal I $ $ Salary expense 2,600 2,600 Bal j Bal Blueprint expense $ 1,600 $ 1,600 o Automobile expense $ 630 $ 630 Bal i Miscellaneous expense $ 375 $ 1,320 $ 1,695 m Bal

Unadjusted Trial Balance $ $ $ $ $ $ 34,925 8,400 2,340 3,300 32,000 9,700 Cash Account recievable Supplies Prepaid Insurance Automobiles Equipment Note payable Account payable Common stock Professional fees Rent expense Salary expense Blueprint expense Automobile expense Miscellaneous expense $ $ $ $ 24,310 8,480 48,700 20,600 $ $ $ $ $ 4,900 2,600 1,600 630 1,695 $ 102,090 $ 102,090

Income Statement Revenue Professional fees $ 20,600 Expense Rent expense Salary expense Blueprint expense Automobile expense Miscellaneous expense $ $ $ $ $ 4,900 2,600 1,600 630 1,695$ 11,425 Net income $ 9,175