Question

Analysis of Transactions Charles Chadwick opened a business called Charlie's Detective Service in January 20--. Set up T accounts for the following accounts: Cash; Accounts Receivable; Office Supplies; Computer Equipment; Office Furniture; Accounts Payable; Charles Chadwick, Capital; Charles Chadwick, Drawing; Professional Fees; Rent Expense; and Utilities Expense. The following transactions occurred during the first month of business. Record these transactions in T accounts. After all transactions are recorded, foot and balance the accounts if necessary. (a) Invested cash in the business, $30,369. (b) Bought office supplies for cash, $379. (c) Bought office furniture for cash, $5,320. (d) Purchased computer and printer on account, $8,118. (e) Received cash from clients for services, $2,850. (f) Paid cash on account for computer and printer purchased in transaction (d), $3,615. (g) Earned professional fees on account during the month, $9,322. (h) Paid cash for office rent for January, $1,303. (i) Paid utility bills for the month, $889. (j) Received cash from clients billed in transaction (g), $6,442. (k) Withdrew cash for personal use, $2,823.

Answer 1

Answer:

Charlie's Detective Service

T-accounts:

Cash

Account Titles                         Debit         Credit

Charles Chadwick, Capital $30,369

Office supplies                                           $379

Office furniture                                         5,320

Professional Fees                  2,850

Accounts Payable                                     3,615

Rent Expense                                            1,303

Utilities Expense                                         889

Accounts Receivable            6,442

Charles Chadwick, Drawing                  2,823

Balance                                              $25,332

Totals                                $39,661   $39,661

Accounts Receivable

Account Titles              Debit         Credit

Professional Fees      $9,322

Cash                                             $6,442

Balance                                        $2,880

Office Supplies

Account Titles              Debit         Credit

Cash                              $379

Computer Equipment

Account Titles              Debit         Credit

Accounts Payable      $8,118

Office Furniture

Account Titles              Debit         Credit

Cash                                             $5,320

Accounts Payable

Account Titles              Debit         Credit

Computer and printer                 $8,118

Cash                           $3,615

Balance                     $4,503

Charles Chadwick, Capital

Account Titles              Debit         Credit

Cash                                             $30,369

Charles Chadwick, Drawing

Account Titles              Debit         Credit

Cash                         $2,823

Professional Fees

Account Titles              Debit         Credit

Cash                                               $2,850

Accounts Receivable                       9,322

Balance                       $12,172

Rent Expense

Account Titles              Debit         Credit

Cash                           $1,303

Utilities Expense

Account Titles              Debit         Credit

Cash                            $889

Explanation:

a) Data and Analysis:

(a) Cash $30,369 Charles Chadwick, Capital $30,369

(b) Office supplies $379 Cash $379

(c) Office furniture $5,320 Cash $5,320

(d) Computer and printer $8,118 Accounts Payable $8,118

(e) Cash $2,850 Professional Fees $2,850

(f) Accounts Payable $3,615 Cash $3,615

(g) Accounts Receivable $9,322 Professional Fees $9,322

(h) Rent Expense $1,303 Cash $1,303

(i) Utilities Expense $889 Cash $889

(j) Cash $6,442 Accounts Receivable $6,442

(k) Charles Chadwick, Drawing $2,823 Cash $2,823