Reference no: EM132480742

Connie Young, an architect, opened an office on October 1, 2019. During the month, she completed the following transactions connected with her professional practice:

a. Transferred cash from a personal bank account to an account to be used for the busi- ness, $36,000.

b. Paid October rent for office and workroom, $2,400.

c. Purchased used automobile for $32,800, paying $7,800 cash and giving a note payable for the remainder.

d. Purchased office and computer equipment on account, $9,000.

e. Paid cash for supplies, $2,150.

f. Paid cash for annual insurance policies, $4,000.

g. Received cash from client for plans delivered, $12,200.

h. Paid cash for miscellaneous expenses, $815.

i. Paid cash to creditors on account, $4,500.

j. Paid $5,000 on note payable.

k. Received invoice for blueprint service, due in November, $2,890. l. Recorded fees earned on plans delivered, payment to be received in November, $18,300.

m. Paid salary of assistants, $6,450.

n. Paid gas, oil, and repairs on automobile for October, $1,020

Instructions

Question 1. Record these transactions directly in the following T accounts, without journalizing: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Accounts Payable; Notes Payable; Connie Young, Capital; Professional Fees; Salary Expense; Blue- print Expense; Rent Expense; Automobile Expense; Miscellaneous Expense. To the left of the amount entered in the accounts, place the appropriate letter to identify the transaction.

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

Question 3. Prepare an unadjusted trial balance for Connie Young, Architect, as of October 31, 2019. 4. Determine the net income or net loss for October.