Question

Ch 2 Written Problem 1 – Connie Young, Architect ACG 3074 Connie Young, an architect, opened an office on October 1, 2019. During the month, she completed the following transactions connected with her professional practice: 1. Transferred cash from a personal bank account to an account to be used for the business, $36,000. 2. Paid October rent for office and workroom, $2,400. 3. Purchased used automobile for $32,800, paying $7,800 cash and giving a note payable for the remainder. 4. Purchased office and computer equipment on account, $9,000. 5. Paid cash for supplies, $2,150. 6. Paid cash for annual insurance policies, $4,000. 7. Received cash from client for plans delivered, $12,200. 8. Paid cash for miscellaneous expenses, $815. 9. Paid cash to creditors on account, $4,500. 10.Paid $5,000 on note payable. 11.Received invoice for blueprint service, due in November, $2,890. 12.Recorded fees earned on plans delivered, payment to be received in November, $18,300. 13.Paid salary of assistants, $6,450. 14.Paid gas, oil, and repairs on automobile for October, $1,020. Instructions 2. Record these transactions directly in the following T accounts, without journalizing: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Accounts Payable; Notes Payable; Connie Young, Capital; Professional Fees; Salary Expense; Blueprint Expense; Rent Expense; Automobile Expense; Miscellaneous Expense. To the left of the amount entered in the accounts, place the appropriate letter to identify the transaction. 3. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance. 4. Prepare an unadjusted trial balance for Connie Young, Architect, as of October 31, 2019. Answer Check Figure: Total of Debit column: $93,890 5. Determine the net income or net loss for October

Answer 1

2 & 3 :

Cash
1.	36,000	2.	2,400
7.	12,200	3.	7,800
		5.	2,150
		6.	4,000
		8.	815
		9.	4,500
		10.	5,000
		13.	6,450
		14.	1,020
Balance	14,065
Accounts Receivable
12.	18,300
Supplies
5.	2,150
Prepaid Insurance
6.	4,000
Automobile
3.	32,800
Equipment
4.	9,000
Accounts Payable
9.	4,500	4.	9,000
		11.	2,890
		Balance	7,390
Notes Payable
10.	5,000	3.	25,000
		Balance	20,000
Connie Young, Capital
		1.	36,000
Professional Fees
		7.	12,200
		12.	18,300
		Balance	30,500
Salary Expense
13.	6,450
Blueprint Expense
11.	2,890
Rent Expense
2.	2,400
Automobile Expense
14.	1,020
Miscellaneous Expense
8.	815

4.

Connie Young, Architect Unadjusted Trial Balance October 31, 2019
Account Titles	Debit	Credit
	$	$
Cash	14,065
Accounts Receivable	18,300
Supplies	2,150
Prepaid Insurance	4,000
Automobile	32,800
Equipment	9,000
Accounts Payable		7,390
Notes Payable		20,000
Connie Young, Capital		36,000
Professional Fees		30,500
Salary Expense	6,450
Blueprint Expense	2,890
Rent Expense	2,400
Automobile Expense	1,020
Miscellaneous Expense	815
Totals	$ 93,890	$ 93,890

5.

Connie Young, Architect Income Statement For the month ended October 31, 2019
Revenues
Professional Fees		$ 30,500
Expenses
Salary Expense	$ 6,450
Blueprint Expense	2,890
Rent Expense	2,400
Automobile Expense	1,020
Miscellaneous Expense	815
Total Expenses		13,575
Net Income ( loss)		$ 16,925