Jay Lin, an architect, opened an office on July 1, 2015. During the month, he completed the following transactions connected with his professional practice:
a. Transferred cash from a personal bank account to an account to be used for the business, $20,000.
b. Paid July rent for office and workroom, $2,500.
c. Purchased office and computer equipment on account, $7,000.
d. Paid cash for supplies, $1,200.
e. Decided to purchase insurance, but could not choose between a $1,000 plan and a $1,200 plan.
f. Received cash from client for plans delivered, $4,175.
g. Received invoice for blueprint service, due in August, $800.
h. Recorded fee earned on plans delivered, payment to be received in August, $3,150.
Instructions
1. Record the above transactions directly in the following T accounts, without journalizing: Cash; Accounts Receivable; Supplies; Equipment; Accounts Payable; Jay Lin, Capital; Professional Fees; Rent Expense; Blueprint Expense. To the left of the 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 Supplies) do not need a balance.
3. Prepare an unadjusted trial balance as at July 31, 2015.