OLEM48 On luly K Resser opened Ressers Business s Services

OLEM48 On luly , K. Resser opened Ressers Business s Services Revenue 3,4,8, K Resser. Drawing Rent Expense Uilities Expense Miscellaneous Expense Cash Insurance Furninare and Fixtures Accounts Payable K Resser, Capital completed during July The following transactions were Bought tables and chairs for cash, $725, Ck. No. 1200. Paid the rent for the current month, $1,750, Ck. No. 1201. $25,000 in a hank account in the name of the business d Bought computers and copy machines from Ferber Equipment, s15 34,000 in cash and placing the balance on account, Ck. No. 1202. computers and copy machines fr s700 o. 1205. 1206. s820. e. Bought supplies on account from Wiggins\'s Distributors, $535. Sold services for cash, $1,742 & Bought insurance for one vear, $1,375, Ck. No. 1203. Paid on account to Ferber Equipment, $700, Ck. No. 1204. t Received and paid the electric bill, $438, Ck. No. 1205. Paid on account to Wiggins\'s Distributors, $315, Ck. No. 1206. k. Sold m. Pai n. kSold services to customers for cash for the second half of the month, ss Received and paid the bill for the business license, $75, Ck. No. 1207 20 d wages to an employec, $I,200, Ck. No. 1208. Resser withdrew cash for personal use, $700, Ck. No. 1209. Check Rigure Required K Resser Capital, July 31, 20,$23,399 I. Record the owner\'s name in the Capital and Drawing T accounts. 2 Cormectly place the plus and minus signs for each T account and label the deb credit sides of the accounts. 3. Record the transactions in the T accounts. Write the letter of each entry to i the transaction. 4. Foot the Taccounts and show the balances. 5. Prepare a trial balance as of July 31, 20-, 6. Prepare an income statement for July 31, 20- 7. Prepare a statement of owner\'s equity for July 31, 20-- 8. Prepare a balance sheet as of July 31, 20--

Solution

K.Resser\'s Business Services General Journal Journal Amount (DR) Amount (CR) Cash $                       25,000.00      To Capital $                               25,000.00 (Being amount deposited by Resser in the business) Furniture & Fixture $                             725.00     To Cash $                                     725.00 (Being amount of purchase of furniture & fixture vide CK No.1200) Rent Expenses $                         1,750.00 To Cash $                                 1,750.00 (Being amount of rent paid for current month vide CK.No.1201) Computer Equipment $                       15,700.00    To Cash $                                 4,000.00    To Accounts Payable $                               11,700.00 (Being amount of purchase of computer and copy machine by paying 4000 cash and $11700 vide CK No.1202 Supplies $                             535.00     To Accounts Payable $                                     535.00 (Being amount of Supplies purchased on credit from Wiggins\'s Distributors) Cash $                         1,742.00    To Service Revenue $                                 1,742.00 (Being amount of Service Provided) Prepaid Insurance 1375     To Cash $                                 1,375.00 (Being amount of Insurance for one year paid vide CK no.1203) Accounts Payable $                             700.00     To Cash $                                     700.00 (Being amount paid to Feber Equipment on account vide CK. No.1204 Electricity Expenses $                             438.00    To Cash $                                     438.00 (Being amount paid for electricity expenses vide CK No.1205 Accounts Payable $                             315.00     To Cash $                                     315.00 (Being amount paidon account to Wiggins\'s Distributors vide CK No.1206 Cash $                             820.00      To Service Revenue $                                     820.00 (Being amount cash revenue) Miscellaneous Expenses $                               75.00     To Cash $                                       75.00 (Being amount paid vide CK No.1207 Wages $                         1,200.00     To Cash $                                 1,200.00 (Being amount paid vide CK No.1208 Drawings $                             700.00     To Cash $                                     700.00 (Being amount withdrawn by Resser vide CK no.1209) Cash A/c Particular Amount Particular Amount To K. Resser 25000 By Furniture & Fixture $        725.00 To Service revenue 1742 By Rent $    1,750.00    To Service Revenue 820 By Computer Equipment $    4,000.00 By Prepaid Insurance $    1,375.00 By Accounts Payable $        700.00 By Electricity Expenses $        438.00 By Accounts Payable $        315.00 By Miscellaneous Expenses $          75.00 By Wages $    1,200.00 By Drawings $        700.00 By Bal c/d $ 16,284.00 $                                                                         -   27562 $ 27,562.00 Furniture & Fixture A/c Particular Amount( DR) Particular Amount (CR) To Cash $                             725.00 By Bal c/d 725 Total $                             725.00 Total $        725.00 Rent A/c Particular Amount( DR) Particular Amount (CR) To Cash $                         1,750.00 By Bal c/d $    1,750.00 Total $                         1,750.00 Total $    1,750.00 Computer Equipment A/c Particular Amount( DR) Particular Amount (CR) To Cash $                         4,000.00 By Bal c/d $ 15,700.00 To Accounts Payable 11700 Total $                       15,700.00 Total $ 15,700.00 Prepaid Insurance Particular Amount( DR) Particular Amount (CR) To Cash $                         1,375.00 By Bal c/d $    1,375.00 Total $                         1,375.00 Total $    1,375.00 Supplies Particular Amount( DR) Particular Amount (CR) To Accounts Payable $                             535.00 By Bal c/d $        535.00 Total $                             535.00 Total $        535.00 Wages Particular Amount( DR) Particular Amount (CR) To Cash $                         1,200.00 By Bal c/d $    1,200.00 Total $                         1,200.00 Total $    1,200.00 Miscellaneous Expenses Particular Amount( DR) Particular Amount (CR) To Cash $                               75.00 By Bal c/d $          75.00 Total $                               75.00 Total $          75.00 Electricity Expenses Particular Amount( DR) Particular Amount (CR) To Cash $                             438.00 By Bal c/d $        438.00 Total $                             438.00 Total $        438.00 Service Revenue Particular Amount( DR) Particular Amount (CR) To Bal c/d $                         2,562.00 To Cash $    1,742.00 To Cash $        820.00 Total $                         2,562.00 Total $    2,562.00 Accounts Payable Particular Amount( DR) Particular Amount (CR) To Cash $                             700.00 By Computer Equipment $ 11,700.00 To Cash $                             315.00 By supplies $        535.00 To Balance C/d $                       11,220.00 Total $                       12,235.00 Total $ 12,235.00 K.Resser\'s Capital A/c Particular Amount( DR) Particular Amount (CR) To Bal C/d $                       25,000.00 By Cash $ 25,000.00 Total $                       25,000.00 Total $ 25,000.00 K. Resser\'s Drawings A/c Particular Amount( DR) Particular Amount (CR) To Cash $                             700.00 By Bal C/d $        700.00 Total $                             700.00 Total $        700.00 Trial Balance Account Head Debit Credit Cash $                       16,284.00 Furniture & Fixtures $                             725.00 Computer Equipment $                       15,700.00 Prepaid Insurance $                         1,375.00 Supplies $                             535.00 Accounts payable $                               11,220.00 Capital A/c $                               25,000.00 Drawings 700 Service Revenue $                                 2,562.00 Rent $                         1,750.00 Electricity Expenses $                             438.00 Wages Expenses $                         1,200.00 Miscellaneous Expenses $                               75.00 Total $                       38,782.00 $                               38,782.00 K .Resser Income Statement July 31st Service Revenue $                                 2,562.00 Expenses wages $                         1,200.00 Rent $                         1,750.00 Electricity Expenses $                             438.00 Miscellaneous Expenses $                               75.00 $                                 3,463.00 Net Income $                                   (901.00) Statement of Owner\'s Equity K.Resser\'s Capital A/c $                       25,000.00 Net Income $                          (901.00) Drawings $                          (700.00) $                               23,399.00 K.Resser Balance Sheet as at July 31st Assets Cash $                       16,284.00 Supplies $                             535.00 Prepaid Insurance $                         1,375.00 Furniture & Fixture $                             725.00 Computer Equipment $                       15,700.00 Total Assets $                               34,619.00 Liabilities Accounts Payable $                       11,220.00 Capital $                       23,399.00 Total Liabilities $                               34,619.00