Ken Jones, an architect, opened an office on April 1, 2016. During the month, he
ID: 2466910 • Letter: K
Question
Ken Jones, an architect, opened an office on April 1, 2016. During the month, he completed the following transactions connected with his professional practice:
Required:
a. Transferred cash from a personal bank account to an account to be used for the business, $18,000. b. Purchased used automobile for $19,500, paying $2,500 cash and giving a note payable for the remainder. c. Paid April rent for office and workroom, $3,150. d. Paid cash for supplies, $1,450. e. Purchased office and computer equipment on account, $6,500. f. Paid cash for annual insurance policies on automobile and equipment, $2,400. g. Received cash from a client for plans delivered, $12,000. h. Paid cash to creditors on account, $1,800. i. Paid cash for miscellaneous expenses, $375. j. Received invoice for blueprint service, due in May, $2,500. k. Recorded fees earned on plans delivered, payment to be received in May, $15,650. l. Paid salary of assistant, $2,800. m. Paid cash for miscellaneous expenses, $200. n. Paid installment due on note payable, $300. o. Paid gas, oil, and repairs on automobile for April, $550.Explanation / Answer
1 & 2
3.
4. Net income for April: $18075
Cash Accounts Receivable Supplies a. 18000 b. 2500 k. 15650 d. 1450 g. 12000 c. 3150 d. 1450 f. 2400 h. 1800 i. 375 l. 2800 m. 200 n. 300 o. 550 End. Bal. 14475 Prepaid Insurance Automobiles Equipment f. 2400 b. 19500 e. 6500 Notes Payable Accounts Payable Ken Jones, Capital n. 300 b. 17000 h. 1800 e. 6500 a. 18000 j. 2500 End. Bal. 16700 End. Bal. 7200 Professional Fees Rent Expense Salary Expense g. 12000 c. 3150 l. 2800 k. 15650 End. Bal. 27650 Blueprint Expense Automobile Expense Miscellaneous Expense j. 2500 o. 550 i. 375 m. 200 End. Bal. 575Related Questions
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