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ENTRIES INTO T ACCOUNTS AND TRIAL BALANCE
 
Leila Durkin, an architect, opened an office on May 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, $30,000
b. Paid May rent for office and workroom, $3,500
c. Purchased used automobile for $25,000, paying $5,000 cash and giving a note payable for the remainder.
d. Purchased office and computer equipment on account, $9,000
e. Paid cash for supplies, $1,200
f. Paid cash for annual insurance policies, $2,400
g. Received cash from client for plans delivered, $8,150
h. Paid cash for miscellaneous expenses, $300
i. Paid cash to creditors on account, $2,500
j. Paid installment due on note payable, $400
k. Received invoice for blueprint service, due in June, $1,200
l. Recorded fee earned on plans delivered , payment to be received in June, $12,900
m. Paid salary of assistant, $1,800
n. Paid gas, oil, and repairs on automobile for May, $600
 
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; leila durkin, capital; professional fees; rent expense; salary expense; blueprint expense; automobile expense; miscellaneous expense. To the left of the amount entered in the accounts, place the appropriate letter 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 Leila Durkin, Architect, as of May 31, 2012.
4. Determine the net income or net loss for May

 

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