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 $22,000.B. Paid January rent for office and workroom, $1,650.C. Purchased used automobile for $26,000, paying $4,800 cash and giving a note payable for the remainder.D. Purchased office and computer equipment on account, $5,600.E. Paid cash for supplies, $1,250.F. Paid cash for annual insurance policies, $3,000.G. Received cash from client for plans delivered, $13,450.H. Paid cash for miscellaneous expenses, $2,300.I. Paid cash to creditors on account, $3,800.J. Paid installment due on note payable, $700.K. Received invoice for blueprint service, due in February, $4,000.L. Recorded fees earned on plans delivered, payment to be received in February, $20,600.M. Paid salary of assistants, $3,500.N. Paid gas, oil, and repairs on automobile for January, $1,300.Required:1. 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.2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.3. Prepare an unadjusted trial balance for Knaus Architects as of January 31, 2018.4. Determine the net income or net loss for January.
1 answer:
<u>The Unadjusted Balance of Trial Balance is $82,350.</u>
<u>The Net Income for January 2018 is $21,300.</u>
Further Explanation:
1. and 2.
Please refer to attached Table: (1) for T-accounts and their balances.
3.
For computation of Unadjusted Balance of Trial Balance, please refer to attached Table: (2)
The balance of unadjusted trial balance is $82,350.
4.
For computation of Net Income for January 2018, please refer to attached Table: (3)
The net income for January 2018 is $21,300.
Learn More:
1. Learn more about the goal of the budget
2. Learn more about the profit margins
3. Learn more about the large expenditure
Answer details:
Grade: Middle School
Subject: Accounting
Chapter: Journal Entry and Trial Balance
Keywords: T- Account transactions, net profit, net loss, journal entry, trial balance, ledger accounts, unadjusted balance, miscellaneous expenses, rent expense, blue print expense, salary expense, automobile expense, prepaid expenses, supplies, accounts receivable, accounts payable, equipment, notes payable, common stock, professional fee, cash account, other ledger accounts, debit balance credit balance.
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