Homework SourseKimberly Manis an architect opened an office on January 1 20
Kimberly Manis, an architect, opened an office on January 1, 2016. During the month, she completed the following transactions connected with her professional practice:
1. Record these transactions directly in the following T accounts, without journalizing: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Notes Payable; Accounts Payable; Kimberly Manis, Capital; Professional Fees; Salary Expense; Blueprint Expense; Rent Expense; Automobile Expense; Miscellaneous Expense. To the left of the amount entered in the accounts, select 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 Kimberly Manis, Architect, as of January 31, 2016.
Kimberley Manis, Architect
UNADJUSTED TRIAL BALANCE
January 31, 2016
1
Cash
2
Accounts Receivable
3
Supplies
4
Prepaid Insurance
5
Automobiles
6
Equipment
7
Notes Payable
8
Accounts Payable
9
Kimberly Manis, Capital
10
Professional Fees
11
Salary Expense
12
Blueprint Expense
13
Rent Expense
14
Automobile Expense
15
Miscellaneous Expense
16
Totals
4. Determine the net income or net loss for January.
| a. | Transferred cash from a personal bank account to an account to be used for the business, $22,000. |
| b. | Paid January rent for office and workroom, $1,650. |
| c. | Purchased used automobile for $26,000, paying $4,800 cash and giving a note payable for the remainder. |
| d. | Purchased office and computer equipment on account, $5,600. |
| e. | Paid cash for supplies, $1,250. |
| f. | Paid cash for annual insurance policies, $3,000. |
| g. | Received cash from client for plans delivered, $13,450. |
| h. | Paid cash for miscellaneous expenses, $2,300. |
| i. | Paid cash to creditors on account, $3,800. |
| j. | Paid installment due on note payable, $700. |
| k. | Received invoice for blueprint service, due in February, $4,000. |
| l. | Recorded fees earned on plans delivered, payment to be received in February, $20,600. |
| m. | Paid salary of assistants, $3,500. |
| n. | Paid gas, oil, and repairs on automobile for January, $1,300. |
Solution
Answer 1 & 2.. Cash Accounts Receivable Supplies a. 22,000.00 1,650.00 b. l. 20,600.00 e. 1,250.00 g. 13,450.00 4,800.00 c. 1,250.00 e. Automobiles Equipment 3,000.00 f. c. 26,000.00 d. 5,600.00 2,300.00 h. 3,800.00 i. Accounts Payable Kimberly Manis, Capital 700.00 j. i. 3,800.00 5,600.00 d. 22,000.00 a. 3,500.00 m. 4,000.00 k. 1,300.00 n. Blueprint Expense End. Bal. 13,150.00 k. 4,000.00 End. Bal. 5,800.00 Prepaid Insurance Miscellaneous Expense f. 3,000.00 Salary Expense h. 2,300.00 m. 3,500.00 Notes Payable j. 700.00 21,200.00 c. Automobile Expense n. 1,300.00 End. Bal. 20,500.00 Professional Fees 13,450.00 g. 20,600.00 l. End. Bal. 34,050.00 Rent Expense b. 1,650.00 Answer 3. Kimberly Manis, Architect Unadjusted Trial Balance 31-Jan-16 Accounts Title Debits Credits Cash 13,150.00 Accounts Receivable 20,600.00 Supplies 1,250.00 Prepaid Insurance 3,000.00 Automobiles 26,000.00 Equipment 5,600.00 Notes Payable 20,500.00 Accounts Payable 5,800.00 Kimberly Manis, Capital 22,000.00 Professional Fees 34,050.00 Salary Expense 3,500.00 Blueprint Expense 4,000.00 Rent Expense 1,650.00 Automobile Expense 1,300.00 Miscellaneous Expense 2,300.00 Total 82,350.00 82,350.00 Answer 4. Income Statement Month Ended Jan 31, 2016 Revenues: Professional Fees 34,050.00 Expenses Insurance Expenses 250.00 Salary Expense 3,500.00 Blueprint Expense 4,000.00 Rent Expense 1,650.00 Automobile Expense 1,300.00 Miscellaneous Expense 2,300.00 Total Expenses 13,000.00 Net Income (Loss) 21,050.00 Insurance Expenses - Jan = $3,000 X 1/12 = $250 Note - 1. Deprecition Expenses is not Recorded as no details are given in the question 2. Supplies Expenses are not considered as no details are given in the question
