The following occurred during June at Young’s Professional Counseling.

Analyze each transaction. Use T accounts to record these transactions and be sure to put the name of the account on the top of each account. Record the effects of the transaction in the T accounts. Use plus and minus signs before the amounts to show the increases and decreases.
1. Purchased office supplies for $3,000 in cash.
2. Delivered monthly statements, collected fee income of $26,000.
3. Paid the current month’s office rent of $5,000.
4. Completed professional counseling, billed client for $4,000.
5. Client paid fee of $2,000 for weekly counseling, previously billed.
6. Paid office salary of $4,600.
7. Paid telephone bill of $580.
8. Billed client for $3,000 fee for preparing a counseling memorandum.
9. Purchased office supplies of $1,100 on account.
10. Paid office salary of $4,600.
11. Collected $3,000 from client who was billed.
12. Clients paid a total of $9,100 cash in fees.
Analyze: How much cash did the business spend during the month?

  • CreatedAugust 08, 2014
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