Item$7$

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Item $7$

The following accounts and transactions are for Vin Nguyen, Landscape Consultant.

Transactions:

Nguyen invested $$141,000$ in cash to start the business.

Paid $$4,100$ for the current month$$s rent.

Bought furniture for $$14,820$ in cash.

Performed services for $$9,100$ in cash.

Paid $$1,060$ for the monthly telephone bill.

Performed services for $$14,900$ on credit.

Purchased equipment, a computer and copier, for $$34,200$; paid $$11,100$ in cash immediately with the balance due in $30$ days.

Received $$7,450$ from credit clients.

Paid $$2,100$ in cash for office cleaning services for the month $($debit miscellaneous expense$).$

Purchased furniture, office chairs, for $$3,900$; received credit terms of $30$ days.

Purchased equipment for $$21,000$ and paid half of this amount in cash immediately; the balance is due in $30$ days.

Issued a check for $$7,500$ to pay salaries.

Performed services for $$15,400$ in cash.

Performed services for $$16,900$ on credit.

Collected $$6,100$ on accounts receivable from charge customers.

Issued a check for $$1,950$ in partial payment of the amount owed for office chairs.

Paid $$510$ to a duplicating company for photocopy work performed during the month $($debit miscellaneous expense$).$

Paid $$1,030$ for the monthly electric bill.

Nguyen withdrew $$7,100$ in cash for personal expenses.

Post the above transactions into the appropriate T accounts.

Analyze:

What liabilities does the business have after all transactions have been recorded?