On May 1, B. Bangle opened Self- Wash Laundry. His accountant listed the following chart of accounts:
Prepaid Insurance
Furniture and Fixtures
Accounts Payable
B. Bangle, Capital
B. Bangle, Drawing
Laundry Revenue
Wages Expense
Rent Expense
Utilities Expense
Miscellaneous Expense

The following transactions were completed during May:
a. Bangle deposited $ 35,000 in a bank account in the name of the business.
b. Bought chairs and tables (Furniture and Fixtures), paying cash, $ 1,870, Ck. No. 1000.
c. Bought supplies on account from Barnes Supply Company, $ 225.
d. Paid the rent for the current month, $ 875, Ck. No. 1001.
e. Bought washing machines and dryers (Equipment) from Lara Equipment Company, $ 12,500, paying $ 3,600 in cash and placing the balance on account, Ck. No. 1002.
f. Sold services for cash for the first half of the month, $ 1,925.
g. Bought insurance for one year, $ 1,560, Ck. No. 1003.
h. Paid on account to Lara Equipment Company, $ 1,800, Ck. No. 1004.
i. Received and paid electric bill, $ 285, Ck. No. 1005.
j. Sold services for cash for the second half of the month, $ 1,835.
k. Paid wages to an employee, $ 940, Ck. No. 1006.
l. Bangle withdrew cash for his personal use, $ 800, Ck. No. 1007.
m. Paid on account to Barnes Supply Company, $ 225, Ck. No. 1008.
n. Received and paid bill from the county for sidewalk repair assessment, $ 280, 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 as of May 31, 20—.
6. Prepare an income statement for May 31, 20—.
7. Prepare a statement of owner’s equity for May 31, 20—.
8. Prepare a balance sheet as of May 31,20—.

  • CreatedOctober 21, 2014
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