April Layton, an architect, opened an office on June 1, 2012. During the month, she completed the following transactions connected with her professional corporation, April Layton, Architect, P.C.:
a. Transferred cash from a personal bank account to an account to be used for the business in exchange for capital stock, $25,000.
b. Purchased used automobile for $24,000, paying $5,000 cash and giving a note payable for the remainder.
c. Paid June rent for office and workroom, $2,000.
d. Paid cash for supplies, $1,450.
e. Purchased office and computer equipment on account, $8,000.
f. Paid cash for annual insurance policies on automobile and equipment, $3,600.
g. Received cash from a client for plans delivered, $10,500.
h. Paid cash to creditors on accounts, $1,750.
i. Paid cash for miscellaneous expenses, $600.
j. Received invoice for blueprint service, due in July, $1,500.
k. Recorded fee earned on plans delivered, payment to be received in July, $12,800.
l. Paid salary of assistant, $1,600.
m. Paid cash for miscellaneous expenses, $200.
n. Paid installment due on note payable, $350.
o. Paid gas, oil, and repairs on automobile for June, $550.
Instructions
1. Record the above transactions directly in the following T accounts, without journalizing; Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Notes Payable; Accounts Payable; Capital Stock; Professional Fees; Rent Expense. To the left of each amount entered in the accounts, place the appropriate letter to identify the transaction.
2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need balance.
3. Prepare an unadjusted trial balance for April Layton, Architect, P.C. as of June 30, 2012.
4. Determine the net income or net loss for June.