Sara-Jayne Parsons is an architect who operates her own business. The accounts and transactions for the business

Question:

Sara-Jayne Parsons is an architect who operates her own business. The accounts and transactions for the business follow.


INSTRUCTIONS

1. Analyze the transactions for January 20X1. Record each in the appropriate T accounts. Identify each entry in the T account by writing the letter of the transaction next to the entry.

2. Determine the account balances. Prepare a trial balance, an income statement, a statement of owner’s equity, and a balance sheet for Sara-Jayne Parsons, Architect.

ASSETS
Cash
Accounts Receivable
Furniture
Equipment
LIABILITIES
Accounts Payable
OWNER’S EQUITY
Sara-Jayne Parsons, Capital
Sara-Jayne Parsons, Drawing
REVENUE
Fees Income
EXPENSES
Advertising Expense
Utilities Expense
Salaries Expense
Telephone Expense
Miscellaneous ExpenseTRANSACTIONS 123456 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Sara-Jayne Parsons invested $75,000 in cash to


Analyze: 

Using the basic accounting equation, what is the financial condition of Sara-Jayne Parsons’s business at the end of the month?

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Related Book For  answer-question

College Accounting A Contemporary Approach

ISBN: 9781265647308

6th Edition

Authors: M. David Haddock, John Price, Michael Farina

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