Question

On May 1, B. Bangle opened Self- Wash Laundry. His accountant listed the following chart of accounts:
Cash
Supplies
Prepaid Insurance
Equipment
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).

Required
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—.


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  • CreatedOctober 21, 2014
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