Reference no: EM131806618

Question - Leila Durkin, an architect, opened an office on May 1, 2012. During the month, she completed the following transactions connected with her professional practice:

Transferred cash from a personal bank account to an account to be used for the business, $30,000.

Paid May rent for office and workroom, $3,500.

Purchased used automobile for $25,000, paying $5,000 cash and giving a note payable for the remainder.

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

Paid cash for supplies, $1,200.

Paid cash for annual insurance policies, $2,400.

Received cash from client for plans delivered, $8,150.

Paid cash for miscellaneous expenses, $300.

Paid cash to creditors on account, $2,500.

Paid installment due on note payable, $400.

Received invoice for blueprint service, due in June, $1,200.

Recorded fee earned on plans delivered, payment to be received in June, $12,900.

Paid salary of assistant, $1,800.

Paid gas, oil, and repairs on automobile for May, $600.

1. Record the above transactions directly into the T accounts. To the left of the amount entered in the accounts, place the appropriate letter to identify the transaction.

2. Determine the balances of the T accounts.