Question

The accounts and transactions of Conner McAllister, Counselor and Attorney at Law, follow.

INSTRUCTIONS
Analyze the transactions. Record each in the appropriate T accounts. Use plus and minus signs in front of the amounts to show the increases and decreases. Identify each entry in the T accounts by writing the letter of the transaction next to the entry.
ASSETS
Cash
Accounts Receivable
Office Furniture
Office Equipment
Automobile
LIABILITIES
Accounts Payable
OWNER’S EQUITY
Conner McAllister, Capital
Conner McAllister, Drawing
REVENUE
Fees Income
EXPENSES
Automobile Expense
Rent Expense
Utilities Expense
Salaries Expense
Telephone Expense
TRANSACTIONS
a. Conner McAllister invested $140,000 in cash to start the business.
b. Paid $7,800 for the current month’s rent.
c. Bought a used automobile for the firm for $38,500 in cash.
d. Performed services for $10,500 in cash.
e. Paid $1,850 for automobile repairs.
f. Performed services for $11,280 on credit.
g. Purchased office chairs for $6,500 on credit.
h. Received $5,400 from credit clients.
i. Paid $3,800 to reduce the amount owed for the office chairs.
j. Issued a check for $1,590 to pay the monthly utility bill.
k. Purchased office equipment for $22,800 and paid half of this amount in cash immediately; the balance is due in 30 days.
l. Issued a check for $18,900 to pay salaries.
m. Performed services for $7,450 in cash.
n. Performed services for $6,500 on credit.
o. Paid $967 for the monthly telephone bill.
p. Collected $4,200 on accounts receivable from charge customers.
q. Purchased additional office equipment and received a bill for $6,880 due in 30 days.
r. Paid $900 in cash for gasoline purchased for the automobile during the month.
s. Conner McAllister withdrew $8,000 in cash for personal expenses.
Analyze: What outstanding amount is owed to the company from its credit customers?



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  • CreatedAugust 08, 2014
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