Nicole Lawrence opened a business called Nickies Neat Ideas in January 20--. Set up T accounts for the following accounts:


Nicole Lawrence opened a business called Nickie’s Neat Ideas in January 20--. Set up T accounts for the following accounts: Cash; Accounts Receivable; Office Supplies; Computer Equipment; Office Furniture; Accounts Payable; Nicole Lawrence, Capital; Nicole Lawrence, Drawing; Professional Fees; Rent Expense; and Utilities Expense. The following transactions occurred during the first month of business. Record these transactions in T accounts. After all transactions have been recorded, foot and balance the accounts if necessary.

(a) Invested cash in the business, $18,000.

(b) Purchased office supplies for cash, $500.

(c) Purchased office furniture for cash, $8,000.

(d) Purchased computer and printer on account, $5,000.

(e) Received cash from clients for services, $4,000.

(f) Paid cash on account for computer and printer purchased in transaction

(d), $2,000.

(g) Earned professional fees on account during the month, $7,000.

(h) Paid office rent for January, $900.

(i) Paid utility bills for the month, $600.

(j) Received cash from clients that were billed previously in transaction (g), $3,000.

(k) Withdrew cash for personal use, $4,000.

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College Accounting

ISBN: 978-0538745192

20th Edition

Authors: Heintz and Parry

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Chapter # 3
Problem: 7
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Question Posted: December 20, 2011 10:30:14