The following accounts and transactions are for Randy Guttery, Landscape Consultant.
INSTRUCTIONS
Analyze the transactions. Record each in the appropriate T accounts. Use plus and minus signs in front of the amounts to show the increases and decreases. Identify each entry in the T accounts by writing the letter of the transaction next to the entry.
ASSETS
Cash
Accounts Receivable
Office Furniture
Office Equipment
LIABILITIES
Accounts Payable
OWNER'S EQUITY
Randy Guttery, Capital
Randy Guttery, Drawing
REVENUE
Fees Income
EXPENSES
Rent Expense
Utilities Expense
Salaries Expense
Telephone Expense
Miscellaneous Expense
TRANSACTIONS
a. Guttery invested $80,000 in cash to start the business.
b. Paid $3,000 for the current month's rent.
c. Bought office furniture for $8,360 in cash.
d. Performed services for $4,100 in cash.
e. Paid $625 for the monthly telephone bill.
f. Performed services for $7,000 on credit.
g. Purchased a computer and copier for $19,000; paid $6,500 in cash immediately with the balance due in 30 days.
h. Received $3,500 from credit clients.
i. Paid $2,000 in cash for office cleaning services for the month.
j. Purchased additional office chairs for $2,900; received credit terms of 30 days.
k. Purchased office equipment for $20,000 and paid half of this amount in cash immediately; the balance is due in 30 days.
l. Issued a check for $4,700 to pay salaries.
m. Performed services for $7,250 in cash.
n. Performed services for $8,000 on credit.
o. Collected $4,000 on accounts receivable from charge customers.
p. Issued a check for $1,450 in partial payment of the amount owed for office chairs.
q. Paid $350 to a duplicating company for photocopy work performed during the month.
r. Paid $610 for the monthly electric bill.
s. Guttery withdrew $4,500 in cash for personal expenses.
Analyze: What liabilities does the business have after all transactions have been recorded?