Question

Marjorie Knaus, an architect, organized Knaus Architects on January 1, 2014. During the month, Knaus Architects completed the following transactions: a. Issued common stock to Marjorie Knaus in exchange for $30,000. b. Pald January rent for office and workroom, $2,500 c. Purchased used automobile for $28,500, paying $6,000 cash and giving a note payable for the remainder. d. Purchased office and computer equipment on account, $8,000. e. Paid cash for supplies, $2,100. f. Paid cash for annual insurance policies, $3,600. 9. Received cash from client for plans delivered, $9,000. h. Paid cash for miscellaneous expenses, $2,600. i. Paid cash to creditors on account, $4,000. 1. Pald installment due on note payable, $1,875. k. Received Invoice for blueprint service, due in February, $5,500. L. Recorded fees earned on plans delivered, payment to be received in February, $31,400. m. Paid salary of assistants, $6,000 n. Paid gas, oil, and repairs on automobile for January, $1,300. 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, Salary Expense, Blueprint Expense, Rent 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 accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.

Answer 1

Cash Accounts Receivable $30000 b $ 2500 k $5,500 С C $ 9000 9 $ 6000 е e $2100 $3600 f h $2600 supplies j $4000 $1875 $6000 $1300 е e $2100 3 3 $39000 $39000 Bal $9,025 Automobiles Prepaid Insurance C $28500 f $3600 Notes payable Equipment С. $22500 j $ 1875 d) 8000 Bal $20,625 Common stock Acounts payabu $ 30,000 $ 4ooo d $ 8000 k $ 5500 Bal $ 950o

Salary expense, Profesional fees 9 g $ 9000 m 0009 $ l $31400 Bal $40400 Blueprint expense Reut expenst b) $2500 k $ 5500 Automobile Miscellaneous Expune cupense $1300 Ч $2600