Marjorie Knaus, an architect, organized Knaus Architects on January 1, 2018. Dur

Question

Marjorie Knaus, an architect, organized Knaus Architects on January 1, 2018. During the month, Knaus Architects completed the following transactions: A. Issued common stock to Marjorie Knaus in exchange for $20,500. B. Paid January rent for office and workroom, $1,500. C. Purchased used automobile for $25,300, paying $5,800 cash and giving a note payable for the remainder. D. Purchased office and computer equipment on account, $5,800. E. Paid cash for supplies, $1,250. F. Paid cash for annual insurance policies, $3,600 G. Received cash from client for plans delivered, $13,500. H. Paid cash for miscellaneous expenses, $2,100. I. Paid cash to creditors on account, $3,900. J. Paid installment due on note payable, $850. K. Received invoice for blueprint service, due in February, $5,000. L. Recorded fees earned on plans delivered, payment to be received in February, $20,70o. M. Paid salary of assistants, $3,800. N. Paid gas, oil, and repairs on automobile for January, $1,500. Required: 1. Record these transactions directly in the following T accounts, without journalizing:Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Notes Payable; Accounts Payable; Common Stock; Professional Fees; Salary Expense; Blueprint Expense; Rent Expense; Automobile Expense; Miscellaneous Expense. To the left of the amount entered in the accounts, select the approoriate letter to identify the transaction

Explanation / Answer

Debit Cash A/c Credit

Debit Accounts receivable A/c Credit

Debit Supplies A/c Credit

Debit Prepaid insurance A/c Credit

Debit Automobiles A/c Credit

Debit Equipment A/c Credit

Debit Notes payable A/c Credit

Debit Accounts payable A/c Credit

Debit Common stock A/c Credit

Debit Professional fee A/c Credit

Debit Salary expense A/c Credit

Debit Blueprint expense A/c Credit

Debit Rent expense A/c Credit

Debit Automobile expense A/c Credit

Debit Miscellaneous expense A/c Credit

Knaus Architects

Unadjusted trial balance

January 31, 2018

Common stock A 20,500 Rent B 1,500    Professional fee G 13,500 Automobile C 5,800 Supplies E 1,250 Insurance F 3,600 Misc. expenses H 2,100 Creditors I 3,900 Notes payable J 850 Salaries M 3,800 Automobile expense N 1,500 Balance c/d 9,700 34,000 34,000

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