Leila Durkin, an architect, opened an office on July 1, 2014. During the month, she completed the following transactions connected with her professional practice:
Issued capital stock to Leila Durkin in exchange for $48,600.
Paid July rent for office and workroom, $4,900.
Purchased used automobile for $32,000, paying $7,300 cash and giving a note payable for the remainder.
Purchased office and computer equipment on account, $9,700.
Paid cash for supplies, $2,330.
Paid cash for annual insurance policies on automobile and equipment, $3,300.
Received cash from a client for plans delivered, $12,200.
Paid cash for miscellaneous expenses, $1,310.
Paid cash to creditors on account, $2,820.
Paid instalment due on note payable, $390.
Received invoice for blueprint service, due in August, $1,600.
Recorded fee earned on plans delivered, payment to be received in August, $8,400.
Paid salary of assistant, $2,600.
Paid gas, oil, and repairs on automobile for July, $630.
Required:
1. Record the above transactions (in chronological order) directly in the following T accounts, without journalizing. Cash, Accounts Receivable, Supplies, Prepaid Insurance, Automobiles, Equipment, Notes Payable, Accounts Payable, Capital Stock, Professional Fees, Rent Expense, Salary Expense, Blueprint Expense, Automobile Expense, Miscellaneous Expense. To the left of each amount entered in the accounts, select the appropriate letter to identify the transaction.
2. Determine the balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.