Question

The following transactions are for Horace Brock, Landscape Consultant. TRANSACTIONS a. Brock invested $157,000 in cash to start the business. b. Paid $5,700 for the current month's rent. c. Bought office furniture for $16,420 in cash. A. Performed services for $7,900 in cash. e. Paid $1,220 for the monthly telephone bill. f. Performed services for $13,700 on credit. g. Purchased a computer and copier for $37,400, paid $12,700 in cash immediately with the balance due in 30 days. h. Received $6,850 from credit clients. 1. Paid $3,700 in cash for office cleaning services for the month. J. Purchased additional office chairs for $5,500; received credit terms of 30 days. k. Purchased office equipment for $37,000 and paid half of this amount in cash immediately; the balance is due in 30 days. 1. Issued a check for $9,100 to pay salaries. m. Performed services for $14,200 in cash. n. Performed services for $15,700 on credit. o. Collected $7,700 on accounts receivable from charge customers. p. Issued a check for $2,750 in partial payment of the amount owed for office chairs. q. Paid $670 to a duplicating company for photocopy work performed during the month. r. Paid $1,190 for the monthly electric bill. s. Brock withdrew $8,700 in cash for personal expenses. Post the above transactions into the appropriate T accounts.

Answer 1

Solution:

T- accounts

		Cash				Accounts Receivable
a.	$157,000	$5,700	b.		f.	$13,700	$6,850	h
d.	$7,900	$16,420	c.		n.	$15,700	$7,700	o
h.	$6,850	$1,220	e.
m.	$14,200	$12,700	g.		Bal.	$14,850
o	$7,700	$3,700	i.
		$18,500	k.
		$9,100	l.
		$2,750	p.
		$670	q.
		$1,190	r.
		$8,700	s.
Bal.	$113,000

	Office	Equipment				Office	Furniture
g.	$37,400				c.	$16,420
k.	$37,000				j.	$5,500
Bal.	$74,400				Bal.	$21,920

	Accounts	Payable				Horace Brock, Capital
p.	$2,750	$24,700	g.				$157,000	a.
		$5,500	j.
		$18,500	k.		Bal.		$157,000
Bal.		$45,950

	Horace Brock, Drawing					Fees Income
s.	$8, 700						$7,900	d.
							$13,700	f.
Bal.	$8,700						$14,200	m.
							$15,700	n.
					Bal.		$51,500

	Rent Expenses					Utilities Expenses
b.	$5,700				r.	$1,190
Bal.	$5700				Bal.	$1,190

	Salaries Expenses					Telephone Expenses
l.	$9,100				e.	$1,220
Bal.	$9,100				Bal.	$1,220

	Miscellaneous Expenses
i	$3,700
q.	$670
Bal.	$4,370

Liabilities = $45,950