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

AssetsRevenue

Cash 111Consulting Fees Earned 411

Office Equipment 121

LiabilitiesExpenses

Accounts Payable 211Advertising Expense 511

Owner’s Equity Rent Expense 512

Brian Pud, Capital 311

Brian Pud, Withdrawals 312