J. Carrie established Carrie’s Photo Tours during June of this year. The accountant prepared the following chart of accounts:
Computer Software
Office Equipment
Neon Sign
Accounts Payable
Owner’s Equity
J. Carrie, Capital
J. Carrie, Drawing
Income from Services
Wages Expense
Rent Expense
Advertising Expense
Utilities Expense
Miscellaneous Expense
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—.

  • CreatedOctober 21, 2014
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