Question

The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019. Transactions: a. Guttery 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. d. 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. i. 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. I. 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. Guttery withdrew $8,700 in cash for personal expenses.

Answer 1

Ans-

				Assets				Liabilities				Stockholder's Equity
	Cash	Office Furniture	Computer and Copier	Office Equipment	Drawings	Accounts Receivables		Accounts Payable	Owner's Capital	Revenue	Telephone Expenses	Office Cleaning Expenses	Electricity Expenses	Photocopy Charges	Rent Expenses	Salaries Expenses
a.	$157,000								$157,000
b.	(5,700)														(5,700)
c.	(16,420)	16,420
d.	7,900									7,900
e.	(1,220)										(1,220)
f.						13,700				13,700
g.	(12,700)		37,400					24,700
h.	6,850					(6,850)
i.	(3,700)											(3,700)
j		5,500						5,500
k.	(18,500)			37,000				18,500
l.	(9,100)															(9,100)
m.	14,200									14,200
n.						15,700				15,700
o.	7,700					(7,700)
p.	(2,750)							(2,750)
q.	(670)													(670)
r.	(1,190)												(1,190)
s.	(8,700)				8,700
Total	$113,000	$21,920	$37,400	$37,000	$8,700	$14,850		$45,950	$157,000	$51,500	($1,220)	($3,700)	($1,190)	($670)	($5,700)	($9,100)
	Assets	=						Liabilities	+	Stockholder's Equity
	$232,870							$45,950	+	$186,920

RANDY GUTTERY LANDSCAPE CONSULTANT

Trial Balance

June 30,2019

Accounts Name	Debit ($)	Credit ($)
Cash	113,000
Office Furniture	21,920
Computer and Copier	37,400
Office Equipment	37,000
Prepaid-Rent	0
Drawings	8,700
Accounts Receivable	14,850
Accounts Payable		45,950
Owner's Capital		157,000
Revenue		51,500
Telephone Expenses	1,220
Office Cleaning Expenses	3,700
Electricity Expenses	1,190
Photocopy Charges	670
Rent Expenses	5,700
Salaries Expenses	9,100
Totals	$254,450	$254,450

Income Statement

Revenue		$51,500
Expenses:
Telephone Expenses	$1,220
Office Cleaning Expenses	$3,700
Electricity Expenses	$1,190
Photocopy Charges	$670
Rent Expense	$5,700
Salaries Expenses	$9,100
Total Expenses		$21,580
Net Income		$29,920

Statement Of Owner's Equity

Owner's Capital, June 1, 2019	$0
Add: Contribution during the period	$157,000
Add: Net Income	$29,920
Less: Withdrawal	$8,700
Owner's Capital June 30,2019	$178,220

Balance Sheet

Assets
Cash	$113,000
Accounts Receivable	$14,850
Total Current Assets	$127,850
Office Furniture	$21,920
Computer and Copier	$37,400
Office Equipment	$37,000
Total Assets	$224,170
Liabilities:
Accounts Payable	$45,950
Total Liabilities	$45,950
Owner's Equity:-
Owner's Capital	$178,220
Total Liabilities and Owner's Equity	$224,170

Change in owner's Equity-$21,220

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