Bernie Pillows established a new consulting company in Fairview. Record the following transactions for Bernie in T
Question:
Bernie Pillows established a new consulting company in Fairview. Record the following transactions for Bernie in T account form. Label each entry with the letter of the transaction.
A. Bernie invested $20,000 in the consulting business from his personal bank account.
B. Bought office equipment on account, $6,000.
C. Company rendered consulting to Jensen Corp. and received cash, $1,200.
D. Bernie withdrew cash for personal use, $200.
E. Paid advertising expense, $600.
F. Rent expense was due but not yet paid, $500.
G. Paid $400 in partial payment of transaction B.
The chart of accounts includes Cash, 111; Office Equipment, 121; Accounts Payable, 211; Bernie Pillows, Capital, 311; Bernie Pillows, Withdrawals, 312; Consulting Fees Earned, 411; Advertising Expense, 511; and Rent Expense, 512.
Step by Step Answer:
College Accounting A Practical Approach
ISBN: 978-0132564441
11th Canadian Edition
Authors: Jeffrey Slater, Brian Zwicker