Marjorie Knaus, an architect, organized Knaus Architects on January 1, 2018. During the month, Knaus Architects completed the fo
llowing 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.
