Draper consulting completed the following transactions during the first half of

Question

Draper consulting completed the following transactions during the first half of a december, 2012:

Dec 2   Received $18,000 cash and gave capital to Draper.
Dec 2   Paid monthly office rent, $550.
Dec 3   Paid cash for a Dell computer, $1,800. This equipment is expected
        to remain in service for five years.
Dec 4   Purchased office furniture on account, $4,200. The furniture
        should last for five years.
Dec 5   Purchased supplies on account, $900.
Dec 9   Performed consulting service for a client on account, $1,500.
Dec 12  Paid utility expenses, $250.
Dec 18  Performed service for a client and received cash of $1,100

Requirements

1. Open T-accounts: Cash; Accounts receivable; Supplies; Equipment; Furniture;

Accounts payable; Draper, capital; Draper, drawing; Service revenue; Rent

expense; and Utilities expense.

2. Journalize the transactions. Explanations are not required.

3. Post to the T-accounts. Key all items by date, and denote an account balance as

Bal. Formal posting references are not required.

4. Prepare a trial balance at December 18. In the Continuing Problem of Chapter 3,

we will add transactions for the remainder of December and prepare a trial balance

at December 31.

Explanation / Answer

This problem helps you develop skill in recording transactions by using a company

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