Question

Marjorie Knaus, an architect, organized Knaus Architects on January 1, 2018. During the month, Knaus Architects completed the following transactions:
a. Issued common stock to Marjorie Knaus in exchange for $51,000.
b. Paid January rent for office and workroom, $5,100.
c. Purchased used automobile for $33,000, paying $7,700 cash and giving a note payable for the remainder.
d. Purchased office and computer equipment on account, $10,200.
e. Paid cash for supplies, $2,450.
f. Paid cash for annual insurance policies, $3,400.
g. Received cash from client for plans delivered, $12,800.
h. Paid cash for miscellaneous expenses, $1,380.
i. Paid cash to creditors on account, $2,960.
j. Paid installment due on note payable, $410.
k. Received invoice for blueprint service, due in August, $1,700.
l. Recorded fees earned on plans delivered, payment to be received in August, $8,800.
m. Paid salary of assistants, $2,700.
n. Paid gas, oil, and repairs on automobile for July, $660.

Required:
a. Record these transactions directly in the following T accounts, without journalizing: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Notes Payable; Accounts Payable; Common Stock; Professional Fees; Salary Expense; Blueprint Expense; Rent Expense; Automobile Expense; Miscellaneous Expense. To the left of the amount entered in the accounts, select the appropriate letter to identify the transaction.
b. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.
c. Prepare an unadjusted trial balance for Knaus Architects as of January 31, 2018.
d. Determine the net income or net loss for January.

Answer 1

Answer:

Unadjusted Trial Balance $117,590.

Explanation:

Unadjusted Trial Balance of Marjorie Knaus :

Debit

Cash 36,400

Accounts Receivable 20,600

Supplies 2,450

Prepaid Insurance 3,400

Automobiles 33,000

Equipment 10,200

Salary Expense 2,700

Blue Print Expense 1,700

Rent Expense 5,100

Automobile Expense 660

Miscellaneous Expense 1,380

Total 117,590

Credit

Notes Payable 25,300

Accounts Payable 7,240

Common Stock 51,000

Professional Fees 34,050

Total 117,590