Peterson Engineering engaged in the following September transactions:

Required

1. Prepare journal entries for the transactions of the journal. Include an explanation for each transaction.

2. Open T-accounts with the following September 1 balances: Cash #101, debit balance $3,000; Accounts Receivable #103, $0; Supplies #105, $0; Equipment #107, $0; Land #110, debit balance $29,000; Accounts Payable #201, $0; Note Payable #205, $0; R. Peterson, Capital #301, credit balance $32,000; Service Revenue #401, $0; Utilities Expense #501, $0.

3. Post the transactions to T-accounts and compute the account balances.

4. Add the balances to prove that total debits equal total credits.

Transcribed Image Text:

Sep. 1 4 8 12 24 27 Paid monthly utilities expense of $140. Borrowed $10,000 cash, signing a note payable. Performed service on account for a customer, $3,000. Purchased equipment on account, $2,000. Purchased supplies for $600 and paid cash. Paid the liability created on September 12.