PROBLEM 3-5B Following is the chart of accounts of Smith Financial Services: Assets 111 Cash 113...

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PROBLEM 3-5B Following is the chart of accounts of Smith Financial Services: Assets 111 Cash 113 Accounts Receivable 115 Supplies 117 Prepaid Insurance 124 Office Furniture Liabilities 221 Accounts Payable Owner's Equity 311 A. Smith, Capital 312 A. Smith, Drawing Revenue 411 Professional Fees Expenses: 511 Salary Expense 512 Rent Expense 513 Advertising Expense 514 Utilities Expense Smith completed the following transactions during June (the first month of business): June 1 Smith deposited $10,000 in a bank account in the name of the business. 3 Sold financial services on account to W. Johnson, $3,030, Inv. No. 001. 8 Paid a bill for advertising, $100, Ck. No. 200. 9 Bought supplies on account from Jones Supply, $75, Inv. No. 405. 13 Performed financial services for clients for cash, $3,200. Received and paid the bill for utilities, $104, Ck. No. 201. 17 19 Bought a desk and chair from Davis Furniture, $600, paying $50 in cash and placing the balance on account, Ck. No. 202. 20 Bought liability insurance for one year, $600, Ck. No. 203. 23 Paid the rent for the current month, $400, Ck. No. 204. 27 Paid on account to Jones Supply, $75, for supplies purchased on June 9, Ck. No. 205. 29 Received $3,030 from W. Johnson for services performed on June 3. (Continued) LO X GI Qu PROBLEM 3-5B Following is the chart of accounts of Smith Financial Services: Assets 111 Cash 113 Accounts Receivable 115 Supplies 117 Prepaid Insurance 124 Office Furniture Liabilities 221 Accounts Payable Owner's Equity 311 A. Smith, Capital 312 A. Smith, Drawing Revenue 411 Professional Fees Expenses: 511 Salary Expense 512 Rent Expense 513 Advertising Expense 514 Utilities Expense Smith completed the following transactions during June (the first month of business): June 1 Smith deposited $10,000 in a bank account in the name of the business. 3 Sold financial services on account to W. Johnson, $3,030, Inv. No. 001. 8 Paid a bill for advertising, $100, Ck. No. 200. 9 Bought supplies on account from Jones Supply, $75, Inv. No. 405. 13 Performed financial services for clients for cash, $3,200. Received and paid the bill for utilities, $104, Ck. No. 201. 17 19 Bought a desk and chair from Davis Furniture, $600, paying $50 in cash and placing the balance on account, Ck. No. 202. 20 Bought liability insurance for one year, $600, Ck. No. 203. 23 Paid the rent for the current month, $400, Ck. No. 204. 27 Paid on account to Jones Supply, $75, for supplies purchased on June 9, Ck. No. 205. 29 Received $3,030 from W. Johnson for services performed on June 3. (Continued) LO X GI Qu

Answer rating: 100% (QA)

To record the transactions in the chart of accounts I will use the following steps 1 Analyze each transaction and determine which accounts are affecte... View the full answer