The accounts and transactions of Kathryn Price, Counselor and Attorney at Law, follow.
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
Automobile
LIABILITIES
Accounts Payable
OWNER’S EQUITY
Kathryn Price, Capital
Kathryn Price, Drawing
REVENUE
Fees Income
EXPENSES
Automobile Expense
Rent Expense
Utilities Expense
Salaries Expense
Telephone Expense
TRANSACTIONS
a. Kathryn Price invested $120,000 in cash to start the business.
b. Paid $6,400 for the current month’s rent.
c. Bought a used automobile for the firm for $36,000 in cash.
d. Performed services for $8,000 in cash.
e. Paid $1,600 for automobile repairs.
f. Performed services for $9,150 on credit.
g. Purchased office chairs for $5,600 on credit.
h. Received $4,500 from credit clients.
i. Paid $3,600 to reduce the amount owed for the office chairs.
j. Issued a check for $1,300 to pay the monthly utility bill.
k. Purchased office equipment for $19,600 and paid half of this amount in cash immediately; the balance is due in 30 days.
l. Issued a check for $13,700 to pay salaries.
m. Performed services for $4,750 in cash.
n. Performed services for $5,500 on credit.
o. Paid $796 for the monthly telephone bill.
p. Collected $3,800 on accounts receivable from charge customers.
q. Purchased additional office equipment and received a bill for $5,440 due in 30 days.
r. Paid $800 in cash for gasoline purchased for the automobile during the month.
s. Kathryn Price withdrew $6,000 in cash for personal expenses.
Analyze: What outstanding amount is owed to the company from its credit customers?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.