Question

S. Myers, a speech therapist, opened a clinic in the name of Myers Clinic. Her accountant prepared the following chart of accounts:
Assets
Cash
Accounts Receivable
Office Equipment
Office Furniture
Liabilities
Accounts Payable
Owner’s Equity
S. Myers, Capital
S. Myers, Drawing
Revenue
Professional Fees
Expenses
Salary Expense
Rent Expense
Utilities Expense
Miscellaneous Expense

The following transactions occurred during June of this year:
a. Myers deposited $ 40,000 in a bank account in the name of the business.
b. Bought waiting room chairs and tables (Office Furniture) on account, $ 1,330.
c. Bought a fax/ copier/ scanner combination (Office Equipment) from Max’s Equipment for $ 595, paying $ 200 in cash and placing the balance on account, Ck. No. 1001.
d. Bought an intercom system (Office Equipment) on account from Regan Office Supply, $ 375.
e. Received and paid the telephone bill, $ 155, Ck. No. 1002.
f. Sold professional services on account, $ 1,484.
g. Received and paid the electric bill, $ 190, Ck. No. 1003.
h. Received and paid the bill for the state speech therapy convention, $ 450, Ck. No. 1004 (Miscellaneous Expense).
i. Sold professional services for cash, $ 2,575.
j. Paid on account to Regan Office Supply, $ 300, Ck. No. 1005.
k. Paid the rent for the current month, $ 940, Ck. No. 1006.
l. Paid salary of the receptionist, $ 880, Ck. No. 1007.
m. Myers withdrew cash for personal use, $ 800, Ck. No. 1008.
n. Received $ 885 on account from patients who were previously billed.

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 June 30, 20—.
6. Prepare an income statement for June 30, 20—.
7. Prepare a statement of owner’s equity for June 30, 20—.
8. Prepare a balance sheet as of June 30, 20—.



$1.99
Sales6
Views158
Comments0
  • CreatedOctober 21, 2014
  • Files Included
Post your question
5000