Bud Peters opened a consulting company, and the following transactions resulted:

1. Bud invested $34,000 in the consulting agency.

2. Bought office equipment on account, $1,000.

3. Agency received cash for consulting work that it completed for a client, $3,100.

4. Bud paid a personal bill from the company checkbook, $80.

5. Paid advertising expense for the month, $650.

6. Rent expense for the month due but unpaid, $900.

7. Paid $600 as partial payment of what was owed from Transaction B.

Check Figure:

After G:

As Bud?s accountant, analyze and record the transactions in T account form. Set up the T accounts and label each entry with the letter of the transaction.

Transcribed Image Text:

Cash (A) 34,000 80 (D) (C) 3,100 650 (E) 600 (G)