Refer to Exercise 2-4 for the transactions of Raja Sama Engineering.
In Exercise 2-4
Dec. 1 Paid monthly utilities expense of $200.
(Analysis: The expense, utilities expense, is increased; therefore, debit Utilities Expense. The asset, cash, is decreased; therefore, credit Cash.)
1 Utilities Expense ....................200
Cash .................................................200
4 Borrowed $20,000 cash, signing a note payable.
8 Purchased equipment on account, $4,000.
12 Performed service on account for a customer, $6,000.
19 Sold for $24,000 cash land that had cost this same amount.
22 Purchased supplies for $1,200 and paid cash.
27 Paid the liability created on December 8.
Required
1. Open the following T-accounts with their December 1 balances: Cash, debit balance $6,000; Accounts Receivable $0; Supplies $0; Equipment $0; Land, debit balance $24,000;
Accounts Payable $0; Notes Payable $0; R. Sama, Capital, credit balance $30,000; Service
Revenue $0; Utilities Expense $0.
2. Record the transactions of Exercise 2-4 directly in the T-accounts affected. Use dates as posting references in the T-accounts. Start with December 1. Journal entries are not required.
3. Compute the December 31 balance for each account, and prove that total debits equal total credits.