april layton an architect opened an office on june 1 2012 during the month she compl 551213

PR 2-1B Entries into T accounts and trial balance

April 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. Record 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 trial balance for April Layton, Architect, as of June 30, 2012.

4. Determine the net income or net loss for June.