Solved: Hannah Knox an architect opened an office on July

1
Hannah Knox an architect opened an office on July 1

Hannah Knox, an architect, opened an office on July 1, 2008. 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 business,
$25,000.
b. Paid July rent for office and workroom, $2,000.
c. Purchased used automobile for $16,500, paying $1,500 cash and giving a note payable for
the remainder.
d. Purchased office and computer equipment on account, $6,500.
e. Paid cash for supplies, $975.
f. Paid cash for annual insurance policies, $1,200.
g. Received cash from client for plans delivered, $3,750.
h. Paid cash for miscellaneous expenses, $240.
i. Paid cash to creditors on account, $2,500.
j. Paid installment due on note payable, $450.
k. Received invoice for blueprint service, due in August, $750.
l. Recorded fee earned on plans delivered, payment to be received in August, $3,150.
m. Paid salary of assistant, $1,500.
n. Paid gas, oil, and repairs on automobile for July, $280.

Instructions
1. Record the above transactions directly in the following T accounts, without journalizing:
Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Notes
Payable; Accounts Payable; Hannah Knox, Capital; Professional Fees; Rent Expense; Salary
Expense; Automobile Expense; Blueprint Expense; Miscellaneous Expense. To the left of the
amount entered in the accounts, place 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 Hannah Knox, Architect, as of July 31, 2008.

Hannah Knox an architect opened an office on July 1

ANSWER
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