The following transactions took place at Quick Perfection Laundry and Cleaners.

Analyze each of the transactions. For each transaction, decide what accounts are affected and set up T accounts. 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. Paid $7,500 for the current month’s rent.
2. Performed services for $9,000 in cash.
3. Paid salaries of $6,800.
4. Performed additional services for $12,200 on credit.
5. Paid $1,580 for the monthly telephone bill.
6. Collected $8,000 from accounts receivable.
7. Received a $380 refund for an overcharge on the telephone bill.
8. Performed services for $8,560 on credit.
9. Paid $950 in cash for the monthly electric bill.
10. Paid $1,590 in cash for gasoline purchased for the firm’s van during the month.
11. Received $6,250 from charge account customers.
12. Performed services for $9,400 in cash.
Analyze: What total cash was collected for Accounts Receivable during the month?

  • CreatedAugust 08, 2014
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