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—.