P. Schwartz, Attorney at Law, opened his office on October 1. The account headings are presented below. Transactions completed during the month follow.

a. Schwartz deposited $ 25,000 in a bank account in the name of the business.
b. Bought office equipment on account from QuipCo, $ 9,670.
c. Schwartz invested his personal law library, which cost $ 2,800.
d. Paid the office rent for the month, $ 1,700, Ck. No. 2000 (Rent Expense).
e. Bought office supplies for cash, $ 418, Ck. No. 2001.
f. Bought insurance for two years, $ 944, Ck. No. 2002.
g. Sold legal services for cash, $ 8,518 (Professional Fees).
h. Paid the salary of the part- time receptionist, $ 1,820, Ck. No. 2003 (Salary Expense).
i. Received and paid the telephone bill, $ 388, Ck. No. 2004 (Telephone Expense).
j. Received and paid the bill for utilities, $ 368, Ck. No. 2005 (Utilities Expense).
k. Sold legal services for cash, $ 9,260 (Professional Fees).
l. Paid on account to QuipCo, $ 2,670, Ck. No. 2006.
m. Schwartz withdrew cash for personal use, $ 2,500, Ck. No. 2007.

1. In the equation, write the owner’s name above the terms Capital and Drawing.
2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses.
3. Write the account totals from the left side of the equal sign and add them. Write the account totals from the right side of the equal sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, reanalyze eachtransaction.

  • CreatedOctober 21, 2014
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