Identify each of the following accounts of Advanced Services Co. as asset, liability, owner's equity, revenue, or expense, and state in each case whether the normal balance is a debit or a credit.
PR2-1B Entries Into T accounts and trail balanceApril Layton, an architect, opened an office on June 1, 2012. During the month, she completed the following transactions connected with her professional practice:
a. Transferred cash from a personal bank account to an account to be used for the business, $25,000.
b. Purchased used automobile for $24,000, paying $5,000 cash and giving a note payable for the remainder.
c. Paid June rent for office and workroom, $2,000.
d. Paid cash for supplies, $1,450.
e. Purchased office and computer equipment on account, $8,000.
f. Paid cash for annual insurance policies on automobile and equipment, $3,600.
g. Received cash from a client for plans delivered, $10,500.
h. Paid cash to creditors on account, $1,750.
i. Paid cash for miscellaneous expenses, $600.
j. Received invoice for blueprint service, due in July, $1,500.
k. Recorded fee earned on plans delivered, payment to be received in July, $12,800.
l. Paid salary of assistant, $1,600.
m. Paid cash for miscellaneous expenses, $200.
n. Paid installment due on note payable, $350.
o. Paid gas, oil, and repairs on automobile for June, $550.
Instructions
1. Records the above transactions directly in the following T accounts, without journalizing: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Notes Payable; Accounts payable; April Layton, Capital; Professional fees; Rent Expense; Salary Expense; Blueprint Expense; Automobile Expense; Miscellaneous Expense. To the left of each amount entered in the accounts, place 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 trail balance for April Layton, Architect, as of June 30, 2012.
4. Determine the net income or net loss for June.