Question

Rhoades Tax Services began business on December 1, 2015. Its December transactions are as follows. Dec. Rhoades invested $20,000 in the business in exchange for common stock. 2 Paid $1,200 cash for December rent to Bomba Realty. 2 Purchased $1,080 of supplies on account. 3 Purchased $9,500 of office equipment; paying $4,700 cash with the balance due in 30 days. 8 Paid $1,080 cash on account for supplies purchased December 2 14 Paid $900 cash for assistant's wages for 2 weeks' work. 20 Performed consulting services for $3,000 cash 28 Paid $900 cash for assistant's wages for 2 weeks' work 30 Billed clients $7,200 for December consulting services. 31 Paid $1,800 cash for dividends. 1

Answer 1

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Transaction	Working	Cash Asset	Non cash Asset	Contra Asset	Liabilities	Cont Capital
1	1080-710		$                 -370			$           -370
2				$            -270		$           -270
3					$                120	$           -120
4	30*75		$               2,250			$         2,250
Total		$                   -	$               1,880	$            -270	$                120	$         1,490
Cash					Accounts Pyaable
Debit		Credit			Debit		Credit
Unadj Balance	$ 12,420						Unadj Balance	$    4,800
Adj Balance	$ 12,420						Adj Balance	$    4,800
Supplies					Consulting revenue
Debit		Credit			Debit		Credit
Unadj Balance	$    1,080	1. 1080-710	$                  370				Unadj Balance	$ 10,200
							4 (75*30)	$    2,250
Adj Balance	$       710						Adj Balance	$ 12,450
Fee Receivable					Accumulated Deprecation
Debit		Credit			Debit		Credit
Unadj Balance	$    7,200						Unadj Balance
4 (75*30)	$    2,250						3	$       120
Adj Balance	$    9,450						Adj Balance	$       120
Depreciation Expense					Wages Payable
Debit		Credit			Debit		Credit
Unadj Balance	$          -						Unadj Balance
3	$       120						2	$       270
Adj Balance	$       120						Adj Balance	$       270
Supplies Expense
Debit		Credit
Unadj Balance	$          -
1. 1080-710	$       370
Adj Balance	$       370
Wages Expense
Debit		Credit
Unadj Balance	$    1,800
2	$       270
Adj Balance	$    2,070