ACCOUNTING TRANSACTIONS

Lynn Cantwell, an architect, opened an office on July 1, 2014. During the month, she completed the
following transactions connected with her professional practice:

July 1. Transferred cash from a personal bank account to an account to be used for the business, 50,000.

July 3. Paid July rent for office and workroom, 2,750.

July 5. Purchased used automobile. 30,000.

July 10. Purchased office and computer equipment on account, 9,000.

July 13. Paid cash for supplies, 1,600.

July 13. Paid cash for annual insurance policies, 2,400.

July 18. Received cash from client for plans delivered, 11,150.

July 20. Paid cash for the following expenses: Utility, 500; Telephone, 450; Miscellaneous, 300.

July 20. Paid cash to creditors on account, 3,500.

July 25. Received invoice for blueprint services, due in August, 1,500.

July 30. Recorded fee earned on plans delivered, payment to be receive in August, 17,300.

July 31. Paid salary assistant, 2,200.

July 31. Paid gas, oil, and repairs on automobile for July, 815.

July 31. Withdrew cash for personal used, 3,000.

 CHART OF ACCOUNTS

BALANCE SHEET ACCOUNTS INCOME STATEMENT ACCOUNTS

1. ASSETS 4. REVENUE
11 Cash 41 Professional Fees
12 Account Receivable 5. EXPENSES
13 Supplies 51 Rent
14 Prepaid Insurance 52 Utility Expense
15 Land 53 Telephone
16 Office Equipment 54 Miscellaneous
2. LIABILITIES 55 Blueprint Service
21 Account Payable 56 Automobile Expense
3. OWNER’S EQUITY 57 Salary Expense
31 Lynn Cantwell, Capital
32 Lynn Cantwell, Drawing

RULES OF DEBIT AND CREDIT

ASSETS LIABILITIES OWNER'S EQUITY

DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT

INCREASE DECREASE DECREASE INCREASE DECREASE INCREASE

LYNN CANTWELL'S DRAWING REVENUE EXPENSES

DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT

INCREASE DECREASE DECREASE INCREASE INCREASE DECREASE