Question: B Kelso established Computer Wizards during November of this year

B. Kelso established Computer Wizards during November of this year. The accountant prepared the following chart of accounts:
Computer Software
Office Equipment
Neon Sign
Accounts Payable
Owner’s Equity
B. Kelso, Capital
B. Kelso, Drawing
Income from Services
Wages Expense
Rent Expense
Advertising Expense
Utilities Expense
Miscellaneous Expense
The following transactions occurred during the month:
a. Kelso deposited $ 45,000 in a bank account in the name of the business.
b. Paid the rent for the current month, $ 1,800, Ck. No. 2001.
c. Bought office desks and filing cabinets for cash, $ 790, Ck. No. 2002.
d. Bought a computer and printer (Office Equipment) from Cyber Center for use in the business, $ 2,700, paying $ 1,700 in cash and placing the balance on account, Ck. No. 2003.
e. Bought a neon sign on account from Signage Co., $ 1,350.
f. Kelso invested her personal computer software with a fair market value of $ 600 in the business.
g. Received a bill from Country News for newspaper advertising, $ 365.
h. Sold services for cash, $ 1,245.
i. Received and paid the electric bill, $ 345, Ck. No. 2004.
j. Paid on account to Country News, a creditor, $ 285, Ck. No. 2005.
k. Sold services for cash, $ 1,450.
l. Paid wages to an employee, $ 925, Ck. No. 2006.
m. Received and paid the bill for the city business license, $ 75, Ck. No. 2007 (Miscellaneous Expense).
n. Kelso withdrew cash for personal use, $ 850, Ck. No. 2008.
o. Bought printer paper and letterhead stationery on account from Office Aids, $ 115.

1. Record the owner’s name in the Capital and Drawing T accounts.
2. Correctly place the plus and minus signs for each T account and label the debit and credit sides of the accounts.
3. Record the transactions in T accounts. Write the letter of each entry to identify the transaction.
4. Foot the T accounts and show the balances. 5. Prepare a trial balance, with a three- line heading, dated November 30, 20—.

View Solution:

Sale on SolutionInn
  • CreatedOctober 21, 2014
  • Files Included
Post your question