ACC-202 Lecture 26: Common stock --Authorized, Issued, Outstanding/ Par Value/ Non-Par Value

On July 1, K. Marion opened Marion's Business Services. Marion's accountant listed the following chart of accounts: Cash K. Marion, Drawing Supplies Business Services Revenue Prepaid Insurance Wages Expense Equipment Rent Expense Furniture and Fixtures Utilities Expense Accounts Payable Miscellaneous Expense K. Marion, Capital The following transactions were completed during July: Marion deposited $31,000 in a bank account in the name of the business. Bought tables and chairs (Furniture and Fixtures) for cash, $850, Ck. No. 1200. Paid the rent for the current month, $1,800, Ck. No. 1201. Bought computers and copy machines (Equipment) from Ferber Equipment, $16,000, paying $3,650 in cash and placing the balance on account, Ck. No. 1202. Bought supplies on account from Wiggins’s Distributors, $750. Sold services for cash, $1,957. Bought insurance for one year, $1,500, Ck. No. 1203. (Assume that cheque was issued on 1st of July.) Paid on account to Ferber Equipment, $1,200, Ck. No. 1204. Received and paid the electric bill, $305, Ck. No. 1205. Paid on account to Wiggins’s Distributors, $435, Ck. No. 1206. Sold services to customers for cash for the second half of the month, $780. Received and paid the bill for the business license, $100, Ck. No. 1207 (Miscellaneous Expense). Paid wages to an employee, $1,400, Ck. No. 1208. Marion withdrew cash for personal use, $1,100, Ck. No. 1209. Required: Correctly place the plus and minus signs for each T account and label the debit and credit sides of the accounts. Record the transactions in the T accounts. Record the amounts in the order given (letters 'a' through 'n'). Foot the T accounts and show the balances.

On May 1, B. Bangle opened Self-Wash Laundry. His accountant listed the following chart of accounts:

The following transactions were completed during May:

Bangle deposited $35,000 in a bank account in the name of the business.

Bought chairs and tables (Furniture and Fixtures), paying cash, $1,870, Ck. No. 1000.

Bought supplies on account from Barnes Supply Company, $225.

Paid the rent for the current month, $875, Ck. No. 1001.

Bought washing machines and dryers (Equipment) from Lara Equipment Company, $12,500, paying $3,600 in cash and placing the balance on account, Ck. No. 1002.

Sold services for cash for the first half of the month, $1,925.

Bought insurance for one year, $1,560, Ck. No. 1003.

Paid on account to Lara Equipment Company, $1,800, Ck. No. 1004.

Received and paid electric bill, $285, Ck. No. 1005.

Sold services for cash for the second half of the month, $1,835.

Paid wages to an employee, $940, Ck. No. 1006.

Bangle withdrew cash for his personal use, $800, Ck. No. 1007.

Paid on account to Barnes Supply Company, $225, Ck. No. 1008.

Received and paid bill from the county for sidewalk repair assessment, $280, Ck. No. 1009 (Miscellaneous Expense).

Correctly place the plus and minus signs for each T account and label the debit and credit sides of the accounts.

Record the transactions in the T accounts. Record the amounts in the order given (letters 'a' through 'n').

Foot the T accounts and show the balances.

Trial balance is $45860

. Gervais established Gervais's Photo Tours during June of this year. The accountant prepared the following chart of accounts: Assets Owner's Equity Expenses Cash J. Gervais, Capital Wages Expense Supplies J. Gervais, Drawing Rent Expense Computer Software Advertising Expense Office Equipment Revenue Utilities Expense Neon Sign Income from Services Miscellaneous Expense Liabilities Accounts Payable The following transactions occurred during the month of June: Gervais deposited $33,000 cash in a bank account in the name of the business. Bought office equipment for cash, $1,710, Ck. No. 1001. Bought computer software from Morey's Computer Center, $760, paying $300 in cash and placing the balance on account, Ck. No. 1002. Paid current month's rent, $905, Ck. No. 1003. Sold services for cash, $1,795. Bought a neon sign from The Sign Company, $1,360, paying $410 in cash and placing the balance on account, Ck. No. 1004. Received bill from The Gossiper for advertising, $415. Bought supplies on account from City Supply, $525. Received and paid the electric bill, $500, Ck. No. 1005. Paid on account to The Gossiper, $220, Ck. No. 1006. Sold services for cash, $3,548. Paid wages to an employee, $840, Ck. No. 1007. Gervais invested his personal computer (Office Equipment) with a fair market value of $1,300 in the business. Gervais withdrew cash for personal use, $950, Ck. No. 1008. Received and paid the bill for city business license, $80, Ck. No. 1009 (Miscellaneous Expense). Required: Correctly place the plus and minus signs for each T account and label the debit and credit sides of the accounts. Record the transactions in the T accounts. Record the amounts in the order given (letters 'a' through 'o'). Foot the T accounts and show the balances.