Question: 1. The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019. The following transactions are for Randy Guttery, Landscape Consultant.
Transactions: a Guttery invested $154,000 in cash to start the business.
b Paid $5,400 for the current month's rent.
c Bought office furniture for $16,120 in cash.
d Performed services for $7,600 in cash.
e Paid $1,190 for the monthly telephone bill.
f Performed services for $13,400 on credit.
g Purchased a computer and copier for $36,800; paid $12,400 in cash immediately with the balance due in 30 days.
h Received $6,700 from credit clients.
i Paid $3,400 in cash for office cleaning services for the month.
j Purchased additional office chairs for $5,200; received credit terms of 30 days.
k Purchased office equipment for $34,000 and paid half of this amount in cash immediately; the balance is due in 30 days.
l Issued a check for $8,800 to pay salaries.
m Performed services for $13,900 in cash.
n Performed services for $15,400 on credit.
o Collected $7,400 on accounts receivable from charge customers.
p Issued a check for $2,600 in partial payment of the amount owed for office chairs.
q Paid $640 to a duplicating company for photocopy work performed during the month.
r Paid $1,160 for the monthly electric bill.
s Guttery withdrew $8,400 in cash for personal expenses.
Post the above transactions into the appropriate T accounts.
Analyze: What liabilities does the business have after all transactions have been recorded? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.
2. The following transactions took place at Calhoun Counseling Services, a business established by Ronald Calhoun.
Post the following transactions into the appropriate T accounts.
Transactions: 1 Ronald Calhoun invested $66,000 cash in the business.
2 Purchased office furniture for $16,600 in cash.
3 Bought a fax machine for $1,010; payment is due in 30 days.
4 Purchased a used car for the firm for $16,600 in cash.
5 Calhoun invested an additional $10,600 cash in the business.
6 Bought a new computer for $3,600; payment is due in 60 days.
7 Paid $1,010 to settle the amount owed on the fax machine.
8 Calhoun withdrew $4,600 in cash for personal expenses.
Analyze: Which transactions affected asset accounts? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.