Answer:
Required 1.
Jan 1
Cash $30,000 (debit)
Capital $30,000 (credit)
Jan 2
Rent Expense $2,450 (debit)
Cash $2,450 (credit)
Jan 3
Supplies $2,200 (debit)
Accounts Payable $2,200 (credit)
Jan 4
Accounts Payable $850 (debit)
Cash $850 (credit)
Jan 5
Cash $14,940 (debit)
Fees Earned $14,940 (credit)
Jan 6
Automobile Expenses $1,580 (debit)
Miscellaneous expenses $470 (debit)
Cash $2,050 (credit)
Jan 7
Salaries Expenses $2,000 (debit)
Cash $2,000 (debit)
Jan 8
Supplies Expense $1,100 (debit)
Supplies $1,100 (credit)
Jan 9
Capital $3,200 (debit)
Cash $3,200 (credit)
Required 2
Cash = $ 34,390 (debit)
Capital = $ 26,800 (credit)
Rent Expense $2,450 (debit)
Supplies = $ 1,100 (debit)
Accounts Payable = $ 1,350 (credit)
Fees Earned $14,940 (credit)
Automobile Expenses $1,580 (debit)
Miscellaneous expenses $470 (debit)
Salaries Expenses $2,000
Supplies Expense $1,100
Required 3.
Debit Credit
Cash $ 34,390
Capital $ 26,800
Rent Expense $2,450
Supplies $ 1,100
Accounts Payable $ 1,350
Fees Earned $14,940
Automobile Expenses $1,580
Miscellaneous expenses $470
Salaries Expenses $2,000
Supplies Expense $1,100
Totals $43,100 $43,100
Required 4.
a. Amount of total revenue recorded in the ledger = $14,940
b. Amount of total expenses recorded in the ledger = $7,600
c. Amount of net income for January = $7,340
Required 5.
Increased by $4,140
Explanation:
<u>Calculation of T - Account Balances </u>
Cash $30,000 - $2,450 - $850 + $14,940 - $2,050 - $2,000 - $3,200 = $ 34,390 (debit)
Capital $30,000 - $3,200 = $ 26,800 (credit)
Rent Expense $2,450 (debit)
Supplies $2,200 - $1,100 = $ 1,100 (debit)
Accounts Payable $2,200 - $850 = $ 1,350 (credit)
Fees Earned $14,940 (credit)
Automobile Expenses $1,580 (debit)
Miscellaneous expenses $470 (debit)
Salaries Expenses $2,000
Supplies Expense $1,100
<u>Calculation of total expenses recorded in the ledger. </u>
Rent Expense $2,450
Automobile Expenses $1,580
Miscellaneous expenses $470
Salaries Expenses $2,000
Supplies Expense $1,100
Total $7,600
<u>Calculation of net income for January.</u>
Sales Revenue $14,940
Less Expenses ( $7,600)
Net Income / (Loss) $7,340
<u>Calculation of increase or decrease in owner’s equity for January.</u>
Net Income / (Loss) $7,340
Less Drawings ($3,200)
Change $4,140
Therefore, Owners Equity Increased by $4,140
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