QuestionQuestion

Transaction Analysis, Ms Hansen started a business on May 1. Analyze the following Transaction using “T” accounts. Label the accounts and show that are affected place the letter and dollar amount on the debit or credit side.

(a) Invest cash in the business- $4,000
(b) Bought equipment for cash, -$500
(c) Bought equipment on account-$800
(d) Paid cash on account for equipment purchased in transaction (c)-$300.
(e) Withdrew cash for personal use-$700.

Foot and balance the T accounts from above.

Set up “T” accounts for the following accounts:

1.Cash; 2.Accounts Receivable; 3.Office Supplies; 4.Computer Equipment; 5.Office Furniture; 6.Accounts payable; 7.Charles, Capital   8.Charles, Drawing; 9.Professional Fees; 10.Rent Expenses; and 11.Utilities Expense.
Record these transactions in “T“accounts. After all transactions are recorded, foot and balance the accounts

(a) Invested cash in the business- $30,000
(b) Bought office supplies for cash-$300
(c) Bough office furniture for cash-5,000
(d) Purchased computer and printer on account-$8,000
(e) Received cash from clients for services-$3,000
(f) Paid cash on account for computer and printer purchased in transaction (d)-$4,000.
(g) Earned professional fees on account during the month-$9,000
(h) Paid cash for office rent for the month-$1,500
(i) Paid utility bills for the month-$800
(j) Received cash from clients billed in transaction (g).-$6,000
(k) Withdrew cash for personal use.-$3,000

From the info above prepare a trail balance for Charles Company as of Jan 1, 2013

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Transaction Analysis
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