Answer:
1) JOURNAL ENTRIES
1 Debit Bank $27,000 Credit Capital $27,000
2 Debit Rent expense $5,050 Credit Bank $5,050
3 Debit Supplies Account $1,490 Credit Accounts payable $1,490
4 Debit Accounts payable $550 Credit Bank $550
5 Debit Bank $22,950 credit Service Revenue $22,950
6 Debit Debit Automobile Expenses $1,400 Debit Miscellaneous expenses $940 Credit Bank 2,340
7 Debit Office salaries $2,940 Credit Bank $2,940
8 Supplies expense $830 Credit Supplies Account $830
9 Debit Drawings $1,350 Credit Bank $1,350
2 T ACCOUNTS
Capital
01 bank $27,000
Drawings
09 Bank $1,350
Bank
01 Capital $27,000 02 Rent expense $5,050
04 Accounts payable $550
05 Service revenue $22,950 06 Automobile expense $1,400
Miscellaneous costs $940
07 Salaries expense $2,940
09 Drawings $1,350
31 Balance C/D $37,720
$49950 $49950
Accounts payable
04 Bank $550 03 Supplies Account $1,490
31 Balance c/d $940
Supplies Account
03 Account payable $1,490 08 Supplies expense $830
31 Balance c/d $660
NOMINAL Accounts section
Service Revenue
05 Bank $22,950
Rent Expense
02 Bank $5,050
Automobile Expense
06 Bank $1,400
Miscellaneous Expense
06 Bank $940
Office Salaries
07 Bank $2,940
Supplies expense
08 Supplies Account $830
3 TRIAL BALANCE Debit Credit
Balance Sheet
Capital $27,000
Drawings $1,350
Bank $37,720
Accounts Payable $940
Supplies Account $660
Nominal Section
Service Revenue $22,950
Rent expense $5,050
Automobile expense $1,400
Miscellaneous Expense $940
Office Salaries $2,940
Supplies expense $830
$50,890 $50,890
a) Total Revenue = $22,950
b) Total expense = 5050+1400+940+2940+830 = $11,160
c) Net income = 22950-11160= $11,790
5 Changes in Equity = Capital + net income - drawings
= 27000+11790-1350 = $37,440
Explanation: