Answer to Question #303466 in Accounting for Katie

Question

Lolita S,an architect, opened an office on March 1 of the current year. During the month she completed the following transactions connected with her practice

a.      Transferred cash from a personal bank account to an account to be used for the business, $15,000

b.     Paid March rent for office and workroom $2,000

c.      Purchased used car for $11,500, paying $2,500 cash and took a bank loan for the remainder

d.     Purchased office and computer equipment on account $5,500

e.     Paid cash for supplies $750

f.       Paid cash for annual insurance policies, $1,050

g.      Received cash form client for plans delivered, $3,100

h.     Paid cash for miscellaneous expenses $75

i.        Paid cash to creditors, $2,950

j.       Paid installment due on the bank loan $400

k.      Received invoice for printing service, due in April, $525

l.        Recorded fee earned on plans delivered, payment to be received in April, $4,150

m.   Paid salaries of assistant $1,200

n.     Paid petrol and repairs on car for March $150

Answer 1

a.Debit current account credit settlements with founders - $15000

b.Debit settlements with creditors credit current account - $2000

c.     Debit car credit cash desk -$2500

Debit current account credit bank loan - $9000

d.     Debit equipment credit current account - $5,500

e. Debit supplies credit cash desk - $750

f. Debit insurance policies credit cash desk - $1,050

g.      Debit cash desk credit client for plans - $3,100

h.     Debit miscellaneous expenses credit cash desk - $75

i.       Debit creditors credit cash desk - $2,950

j.        Debit bank loan credit current account - $400

k.      Debit creditors credit current account - $525

l.       Debit current account credit client for plans - $4,150

m.   Debit  salaries of assistant credit current account $1,200

n.     Debit petrol and repairs on car credit current account $150