Reference no: EM131221083

Kimberly Manis, an architect, organized Manis Architects on January 1, 2016. During the month, Manis Architects completed the following transactions:

A. Issued common stock to Kimberley Manis in exchange for $20,000.

B. Paid January rent for office and workroom, $1,900.

C. Purchased used automobile for $28,100, paying $5,800 cash and giving a note payable for the remainder.

D. Purchased office and computer equipment on account, $5,200.

E. Paid cash for supplies, $1,400.

F. Paid cash for annual insurance policies, $3,900.

G. Received cash from client for plans delivered, $13,000.

H. Paid cash for miscellaneous expenses, $2,200.

I. Paid cash to creditors on account, $4,000.

J. Paid installment due on note payable, $800.

K. Received invoice for blueprint service, due in February, $4,250.

L. Recorded fees earned on plans delivered, payment to be received in February, $20,300.

M. Paid salary of assistants, $4,000.

N. Paid gas, oil, and repairs on automobile for January, $1,100.

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 appropriate letter to identify the transaction.

2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.

3. Prepare an unadjusted trial balance for Manis Architects as of January 31, 2016. 4. Determine the net income or net loss for January.