Problem Set A LO PROBLEM 31A The chart of accounts of the Ba

Problem Set A LO PROBLEM 3-1A The chart of accounts of the Barnes School is shown here, followed the transactions that took place during October of this year Assets 111 Cash 113 Accounts Receivable 115 Prepaid Insurance 124 Equipment 127 Furniture Revenue 411 Tuition Income Expenses 511 Salary Expense 512 Rent Expense 513 Gas and Oil Expense 514 Advertising Expense 515 Repair Expense 516 Telephone Expense 517 Utilities Expense 529 Miscellaneous Expense Liabilities 221 Accounts Payable Owner\'s Equity 311 R. Barnes, Capital 312 R. Barnes, Drawing

Solution

Date Account Debit credit Oct 1 Prepaid insurance 1850 cash 1850 [Purchased insurance for one year] oct 3 Advertising expense 415 Accounts payable 415 [being advertising expense incurred] oct4 Rent expense 1870 cash 1870 [BEING REnt for current month paid] oct 7 Repair expense 318 Accounts payable 318 [Repair of equipment incurred] oct 10 Cash 6375 Tuition Income 6375 [fees from students collected] oct11 Telephone expense 312 cash 312 [telephone bill paid] oct15 Furniture 1980 cash 980 Accounts payable 1000 [Chairs and desks purchased partly for cash and rest on account] oct18 Accounts payable 415 cash 415 [Paid to business summary for advertising] oct 21 R barnes drawing 1000 cash 1000 [drawing s for personal use made] oct 24 Gas an oil expense 225 Accounts payable 225 [being gas and oil expense incurred] oct 25 cash 6380 Tuition income 6380 oct 27 salary expense 1150 cash 1150 [salary to part time assistant paid] oct28 Equipment 1950 Accounts payable 1950 [Being photocopier purchased on account] oct29 cash 950 Accounts receivable 950 [tuition fee due for septemebr received] oct 30 utiliites expense 623 cash 623 [utilities expense incurred] oct 31 Miscellaneous expense 87 cash 87 [being paid for flower arrangement] oct 31 Machinery 1549 R Barnes capital 1549 being computer and printer invested in to business ]