The following accounts and transactions are for John Wilson, Landscape Consultant.INSTRUCT...

The following accounts and transactions are for John Wilson, Landscape Consultant.

INSTRUCTIONS

Analyze the transactions. Record each in the appropriate T accounts. Use plus and minus signs in front of the amounts to show the increases and decreases. Identify each entry in the T accounts by writing the letter of the transaction next to the entry.

ASSETS

Cash

Accounts Receivable

Office Furniture

Office Equipment

LIABILITIES

Accounts Payable

OWNER’S EQUITY

John Wilson, Capital

John Wilson, Drawing

REVENUE

Fees Income

EXPENSES

Rent Expense

Utilities Expense

Salaries Expense

Telephone Expense

Miscellaneous Expense

TRANSACTIONS

a. Wilson invested $150,000 in cash to start the business.

b. Paid $5,000 for the current month’s rent.

c. Bought office furniture for $15,720 in cash.

d. Performed services for $7,200 in cash.

e. Paid $1,150 for the monthly telephone bill.

f. Performed services for $13,000 on credit.

g. Purchased a computer and copier for $36,000, paid $12,000 in cash immediately with the balance due in 30 days.

h. Received $6,500 from credit clients.

i. Paid $3,000 in cash for office cleaning services for the month.

j. Purchased additional office chairs for $4,800; received credit terms of 30 days.

k. Purchased office equipment for $30,000 and paid half of this amount in cash immediately; the balance is due in 30 days.

l. Issued a check for $8,400 to pay salaries.

m. Performed services for $13,500 in cash.

n. Performed services for $15,000 on credit.

o. Collected $7,000 on accounts receivable from charge customers.

p. Issued a check for $2,400 in partial payment of the amount owed for office chairs.

q. Paid $600 to a duplicating company for photocopy work performed during the month.

r. Paid $1,120 for the monthly electric bill.

s. Wilson withdrew $8,000 in cash for personal expenses.

Analyze: What liabilities does the business have after all transactions have been recorded?