Reference no: EM132805929
Problem - Vision Consulting Inc. began operations on November 1, 2014, and showed the following account balances at November 30. Cash: $41,000; Accounts Receivable: $4,400; Prepaid Insurance: $2,000; Equipment: $2,400; Accounts Payable: $10,600; Share Capital: $38,700; Dividends: $4,800; Consulting Revenue Earned: $9,400; Utilities Expense: $4,100. The following transactions occurred during December.
a. December 1: Kimberly Fisher (a shareholder), received share capital in Vision Consulting Inc., after investing $85,000 cash into the business.
b. December 2: Vision Consulting Inc. used credit to purchase $2,750 of equipment.
c. December 4: Vision Consulting Inc. paid $100 towards the bill from transaction (b).
d. December 6: Vision Consulting Inc. provided $4,000 of consulting services for a customer who will pay within 30 days.
e. December 9: Vision Consulting Inc. paid $200 for this month's utilities bill received today.
f. December 10: Vision Consulting Inc. received $1,900 towards payment for the services provided in transaction (d).
g. December 12: Vision Consulting Inc. performed consulting services for a customer and received $200.
h. December 14: Vision Consulting Inc. returned to the supplier $1,500 of equipment discovered to be defective. It was originally purchased on account in transaction (b).
i. December 15: Vision Consulting Inc. paid $2,750 for equipment purchased today.
j. December 17: Vision Consulting Inc. bought $4,500 of equipment, using $1,000 cash and $3,500 on account.
Required - Enter each account balance as of November 30 in the appropriate T-account, and then record the transactions by entering the debit and credit entries directly in the T-accounts. Use the date for each transaction to identify the entries, placing the date in the left-hand cell and the amount in the right-hand cell of the appropriate side of the T-account. Then determine the balance of each account, and write 'Balance' (or 'Bal') next to it, in the left-hand cell on the appropriate side.
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