Question: Brian Pud opened a consulting company and the following transactions

Brian Pud opened a consulting company, and the following transactions resulted:
a. Brian invested $40,000 in the consulting agency.
b. Bought office equipment on account, $7,000.
c. Agency received cash for consulting work that it completed for a client, $2,000.
d. Brian paid a personal bill from the company checkbook, $150.
e. Paid advertising expense for the month, $300.
f. Rent expense for the month due but unpaid, $1,000.
g. Paid $1,100 as partial payment of what was owed from transaction B.
As Brian’s accountant, analyze and record the transactions in T account form.
Set up the T accounts and label each entry with the letter of the transaction.
Chart of Accounts
Assets Revenue
Cash 111 Consulting Fees Earned 411
Office Equipment 121
Liabilities Expenses
Accounts Payable 211 Advertising Expense 511
Owner’s Equity Rent Expense 512
Brian Pud, Capital 311
Brian Pud, Withdrawals 312

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  • CreatedApril 24, 2014
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