Question

an archilect, organized Knaus uring A Issued common slock to Marjorie Knaus in exchange for $30,000 B. Paid 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 G. Received cash from client for plans delivered, $9,000 H. Paid cash for miscellaneous expenses, $2,600. L. Paid cash to creditors on account, $4,000 J. Paid installment due on note payable, $1,875 K Received invoice for blueprint service, due in February, $5,500 L Recorded fees eamed on plans delivered, payment to be received in February, $31,400 M. Paid salary of assistants, $6,000 N. Paid gas, cil, and repairs on automobile for January, $1,300. Required: 1 Record these transactions directly in the following T accounts, without journlizing Cash, Accounts Recevable: 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 the amount entered in the accounts select the appropriate letter to identify the transaction

Answer 1

Answer to Requirement 1 & 2 (T-accounts):

T-accounts have been drawn up as per the requirements mentioned in the question with the alphabets and the account balances.

Answer to Requirement 1 & 2 (T-accounts):

Answer to Requirement 1 & 2 (T-accounts):

Explanations for Requirement 1(T-accounts):

It has been provided for a better understanding for the student of the debit credits effects of T-accounts.

Explanations for Requirement 1(T-accounts):

It has been provided for a better understanding for the student of the debit credits effects of T-accounts.

Explanations for Requirement 1(T-accounts):

It has been provided for a better understanding for the student of the debit credits effects of T-accounts.

Requirement 3: Unadjusted Trial Balance

Knaus Architect Unadjusted Trial Balance January 31, 2018 Debit Requirement 3 Credit Cash Accounts Receivable Supplies Prepaid Insurance Automobile Equipment Notes Payable Accounts Payable Common Stock Professional Fees Blueprint expense 9,025 31,400 2,100 3,600 28,500 8,000 20,625 9,500 30,000 40,400 5,500 2,500 6,000 1,300 2,600 7 Rent expense Salary expense Automobile expense Miscellaneous expense Totals $1,00,525 $ 1,00,525

Requirement 4: Computation of Net Income for the month of January

Requirement 4 Computation of Net Income for January Revenue: Professional Fees Less expenses: Blueprint expense Rent expense Salary expense Automobile expense Miscellaneous expense2,600 Total of expenses 40,400 $ 5,500 $ 2,500 6,000 1,300 $17,900 (5500 2500 6000 1300 2600) Net Income $22,500 (40,400 - 17,900)