Question

Entries into T Accounts and Trial Balance Connie Young, an architect, opened an office on October 1, 20Y4. During the month, she completed the following transactions connected with her professional practice: Transferred cash from a personal bank account to an account to be used for the business, $53,500. Paid October rent for office and workroom, $5,400. Purchased used automobile for $35,000, paying $8,000 cash and giving a note payable for the remainder. Purchased office and computer equipment on account, $10,700. Paid cash for supplies, $2,570. Paid cash for annual insurance policies, $3,600. Received cash from client for plans delivered, $13,400. Paid cash for miscellaneous expenses, $1,450. Paid cash to creditors on account, $3,100. Paid $430 on note payable. Received invoice for blueprint service, due in November, $1,800. Recorded fees earned on plans delivered, payment to be received in November, $9,300. Paid salary of assistants, $2,800. Paid gas, oil, and repairs on automobile for October, $700.

Answer 1

That’s to long 29 x 1,800

Answer 2

The trial balance shows that the accounting equation is in balance, indicating that the transactions have been recorded accurately.

How is that so?

Below are the entries:

• Transferred cash from a personal bank account to a business account:

Debit: Cash $53,500

Credit: Owner's Equity $53,500

• Paid October rent for office and workroom:

Debit: Rent Expense $5,400

Credit: Cash $5,400

• Purchased used automobile:

Debit: Automobile $35,000

Credit: Cash $8,000

Credit: Notes Payable $27,000

• Purchased office and computer equipment on account:

Debit: Office and Computer Equipment $10,700

Credit: Accounts Payable $10,700

• Paid cash for supplies:

Debit: Supplies Expense $2,570

Credit: Cash $2,570

• Paid cash for annual insurance policies:

Debit: Prepaid Insurance $3,600

Credit: Cash $3,600

• Received cash from client for plans delivered:

Debit: Cash $13,400

Credit: Fees Earned $13,400

• Paid cash for miscellaneous expenses:

Debit: Miscellaneous Expenses $1,450

Credit: Cash $1,450

• Paid cash to creditors on account:

Debit: Accounts Payable $3,100

Credit: Cash $3,100

• Paid on the note payable:

Debit: Notes Payable $430

Credit: Cash $430

• Received invoice for blueprint service, due in November:

Debit: Blueprint Service Expense $1,800

Credit: Accounts Payable $1,800

• Recorded fees earned on plans delivered, payment to be received in November:

Debit: Accounts Receivable $9,300

Credit: Fees Earned $9,300

• Paid salary of assistants:

Debit: Salary Expense $2,800

Credit: Cash $2,800

• Paid gas, oil, and repairs on automobile for October:

Debit: Automobile Expense $700

Credit: Cash $700