J. Carrie established Carrie’s Photo Tours during June of this year. The accountant prepared the following chart of accounts:
J. Carrie, Capital
J. Carrie, Drawing
Income from Services
The following transactions occurred during the month of June:
a. Carrie deposited $ 30,000 cash in a bank account in the name of the business.
b. Bought office equipment for cash, $ 1,850, Ck. No. 1001.
c. Bought computer software from Morey’s Computer Center, $ 640, paying $ 350 in cash and placing the balance on account, Ck. No. 1002.
d. Paid current month’s rent, $ 950, Ck. No. 1003.
e. Sold services for cash, $ 1,575.
f. Bought a neon sign from The Sign Company, $ 1,335, paying $ 435 in cash and placing the balance on account, Ck. No. 1004.
g. Received bill from The Gossiper for advertising, $ 445.
h. Bought supplies on account from City Supply, $ 460.
i. Received and paid the electric bill, $ 380, Ck. No. 1005.
j. Paid on account to The Gossiper, $ 245, Ck. No. 1006.
k. Sold services for cash, $ 3,474.
l. Paid wages to an employee, $ 930, Ck. No. 1007.
m. Carrie invested his personal computer (Office Equipment) with a fair market value of $ 1,000 in the business.
n. Carrie withdrew cash for personal use, $ 800, Ck. No. 1008.
o. Received and paid the bill for city business license, $ 75, Ck. No. 1009 ( Miscellaneous Expense).
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 the 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 June 30, 20—.