Question

Ken Jones, an architect, organized Jones Architects on April 1, 20Y2. During the month, Jones Architects completed the following transactions: Transferred cash from a personal bank account to an account to be used for the business in exchange for Common Stock, $30,000. Purchased used automobile for $20,000, paying $4,500 cash and giving a note payable for the remainder. Paid April rent for office and workroom, $3,000. Paid cash for supplies, $1,440. Purchased office and computer equipment on account, $6,000. Paid cash for annual insurance policies on automobile and equipment, $2,000. Received cash from a client for plans delivered, $7,500. Paid cash to creditors on account, $1,740. Paid cash for miscellaneous expenses, $375. Received invoice for blueprint service, due in May, $1,000. Recorded fees earned on plans delivered, payment to be received in May, $5,200. Paid salary of assistant, $1,600. Paid cash for miscellaneous expenses, $810. Paid installment due on note payable, $240. Paid gas, oil, and repairs on automobile for April, $390.
Required:
Record the above transactions in T accounts.

Answer 1

Answer:

Jones Architects

T-accounts:

Cash

Account Titles               Debit      Credit

Common Stock,       $30,000

Automobile                                 $4,500

Rent expense                             $3,000

Supplies                                      $1,440

Prepaid Insurance                     $2,000

Service Revenue       $7,500

Accounts Payable                      $1,740

Miscellaneous expenses,            $375

Salary Expense                         $1,600

Miscellaneous expenses,            $810

Note payable,                              $240

Automobile expense                  $390

Common Stock

Account Titles               Debit      Credit

Cash                                           $30,000

Note payable

Account Titles               Debit      Credit

Automobile                                $15,500

Cash                              $240

Automobile

Account Titles               Debit      Credit

Cash                             $4,500

Note payable             $15,500

Rent expense

Account Titles               Debit      Credit

Cash                             $3,000

Supplies

Account Titles               Debit      Credit

Cash                             $1,440

Office and computer equipment

Account Titles               Debit      Credit

Accounts Payable      $6,000

Accounts Payable

Account Titles               Debit      Credit

Office and computer equipment $6,000

Cash                            $1,740

Blueprint expense                        $1,000

Prepaid Insurance

Account Titles               Debit      Credit

Cash                             $2,000

Service Revenue

Account Titles               Debit      Credit

Cash                                              $7,500

Accounts receivable                    $5,200

Miscellaneous expenses

Account Titles               Debit      Credit

Cash                               $375

Cash                               $810

Blueprint expense

Account Titles               Debit      Credit

Accounts payable        $1,000

Accounts Receivable

Account Titles               Debit      Credit

Service Revenue        $5,200

Salary Expense

Account Titles               Debit      Credit

Cash                              $1,600

Automobile expense

Account Titles               Debit      Credit

Cash                               $390

Explanation:

a) Data and Analysis:

Cash $30,000 Common Stock, $30,000

Automobile $20,000 Cash $4,500 Note payable $15,500

Rent expense $3,000 Cash $3,000

Supplies $1,440 Cash $1,440

Office and computer equipment $6,000 Accounts Payable $6,000

Prepaid Insurance $2,000 Cash $2,000

Cash $7,500 Service Revenue $7,500

Accounts Payable $1,740 Cash $1,740

Miscellaneous expenses, $375 Cash $375

Blueprint expense $1,000 Accounts payable $1,000

Accounts receivable $5,200 Service Revenue $5,200

Salary Expense $1,600 Cash $1,600

Miscellaneous expenses, $810 Cash $810

Note payable, $240 Cash $240

Automobile expense $390 Cash $390