B. Turner opened a school for administrative skills called Blitz Secretarial Training.
a. Turner contributed the following assets to the business:
Cash ........ $11,400
Computers ...... 8,600
Office Equipment... 7,200
b. Found a location for his business and paid the first month’s rent, $520.
c. Paid for an advertisement announcing the opening of the school, $380.
d. Received applications from three students for a four-week secretarial program and two students for a ten-day keyboarding course. The students will be billed a total of $2,600.
e. Purchased supplies on credit, $660.
f. Billed the enrolled students, $3,480.
g. Purchased a second-hand computer, $960, and office equipment, $760, on credit.
h. Paid for the supplies purchased on credit in e, $660.
i. Paid cash to repair a broken computer, $80.
j. Received partial payment from students previously billed, $2,160.
k. Paid the utility bill for the current month, $180.
l. Paid an assistant one week’s salary, $880.
m. Made a cash withdrawal of $600.

Required
1. Set up the following T accounts: Cash; Accounts Receivable; Supplies; Computers; Office Equipment; Accounts Payable; B. Turner, Capital; B. Turner, Withdrawals; Tuition Revenue; Salaries Expense; Utilities Expense; Rent Expense; Repair Expense; and Advertising Expense.
2. Record the transactions directly in the T accounts, using the transaction letter to identify each debit and credit.
3. Prepare a trial balance using today’s date.
4. Examine transactions f and j. What were the revenues and how much cash was received from the revenues? What business issues might you see arising from the differences in these numbers?