Accounting Transactions and Statements Study Guide

School: American InterContinental University - Course: ACC 101 - Subject: Accounting

Problem 2-3A Transactions S. Myers, a speech therapist, opened a clinic in the name of Myers Clinic. Her accountant prepared the following chart of accounts: Assets oCash oAccounts Receivable oOffice Equipment oOffice Furniture Liabilities oAccounts Payable Owner's Equity oS. Myers, Capital oS. Myers, Drawing Revenue oProfessional Fees Expenses oSalary Expense oRent Expense oUtilities Expense oMiscellaneous Expense The following transactions occurred during June of this year: oMyers deposited $40,000 in a bank account in the name of the business. oBought waiting room chairs and tables on account, $1,330. oBought a fax/copier/scanner combination from Max's Equipment for $595, paying $200 in cash and placing the balance on account, Ck. No. 1001. oBought an intercom system on account from Regan Office Supply, $375. oReceived and paid the telephone bill, $155, Ck. No. 1002.

oSold professional services on account, $1,484. oReceived and paid the electric bill, $190, Ck. No. 1003. oReceived and paid the bill for the state speech therapy convention, $450, Ck. No. 1004. oSold professional services for cash, $2,575. oPaid on account to Regan Office Supply, $300, Ck. No. 1005. oPaid the rent for the current month, $940, Ck. No. 1006. oPaid salary of the receptionist, $880, Ck. No. 1007. oMyers withdrew cash for personal use, $800, Ck. No. 1008. oReceived $885 on account from patients who were previously billed. Required 2.Record the owner's name in the Capital and Drawing T accounts. 3.Correctly place the plus and minus signs for each T account and label the debit and credit sides of the accounts. 4.Record the transactions in the T accounts. Write the letter of each entry to identify the transaction. 5.Foot the T accounts and show the balances. 6.Prepare a trial balance as of June 30, 20--. 7.Prepare an income statement for June 30, 20--. 8.Prepare a statement of owner's equity for June 30, 20--. 9.Prepare a balance sheet as of June 30, 20--.