Principles of Acct I ACCT1010

Mary Smith opened an architectural firm called Creative Architecture and recorded the following transactions. Use the Accounting Equation grid to record the following transactions and T-accounts. Include your fee. Prepare financial statements for a bonus.

July 1 Invested $15,000 in the business.

July 1 Paid $4,000 for July rent.

July 3 Paid $400 for July's janitorial services

July 3 Bought office supplies for $870 using a company credit card which is recorded as Accounts Payable.

July 5 Bought 2 computers and printers on account for $2,500.

July 6 Paid a Certified Public Accountant $200 to balance the books.

July 6 Signed up for a monthly internet connection to the computers & immediately paid $25 for July.

July 9 Completed plans for a home & quickly collected $6,000 architectural fee.
July 12 Completed plans for a commercial building but did not immediately collect the fee of $15,000 due to financing problems with the builder.

July 14 Purchased stamps at the U. S. Post Office for $250 using a credit card.

July 16 Charged on account an advertisement announcing the opening of the architectural firm at the Commercial Appeal, $175.

July 17 Completed plans for a home, and the builder, Angel Builders, asked for a month's extension to pay the bill $2,500.

July 22 Collected the fee of July 12 as the complications have been resolved.

July 23 Paid the month's telephone bill, $250.

July 24 Paid the month's utility bill of $450.

July 31 Mary withdrew $2,500 of business cash for personal use.

July 31 Paid $2,400 to a secretary-receptionist.