Reference no: EM132620972

Ken Jones, an architect, organized Jones Architects on April 1, 2014. During the month, Jones Architects completed the following transactions:

1. Transferred cash from a personal bank account to an account to be used for the business in exchange for capital stock, $18,000.
2. Purchased used automobile for $19,500, paying $2,500 cash and giving a note payable for the remainder.
3. Paid April rent for office and workroom, $3,150.
4. Paid cash for supplies, $1,450.
5. Purchased office and computer equipment on account, $6,500.
6. Paid cash for annual insurance policies on automobile and equipment, $2,400.
7. Received cash from a client for plans delivered, $12,000.
8. Paid cash to creditors on account, $1,800.
9. Paid cash for miscellaneous expenses, $375.
10. Received invoice for blueprint service, due in May, $2,500.
11. Recorded fee earned on plans delivered, payment to be received in May, $15,650.
12. Paid salary of assistant, $2,800.
13. Paid cash for miscellaneous expenses, $200.
14. Paid installment due on note payable, $300.
15. Paid gas, oil, and repairs on automobile for April, $550.

Instructions.

Question 1: Journalize the transaction and prepare T accounts for April in the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Automobiles, Equipment, Notes Payable, Accounts Payable, Capital Stock, Professional Fees, Rent Expense, Salary Expense, Blueprint Expense, Automobile Expense, and Miscellaneous Expense. To the left of each amount entered in the accounts, place the appropriate letter to identify the transaction.

Question 2: Determine account balances of the T accounts.