Transaction Analysis, T Accounts, and Trial Balance

Turner opened a school for administrative skills called Blitz Secretarial Training.

a. Turner contributed the following assets to the business:

b. Found a location for his business and paid the first month's rent, $520.

c. Paid for an advertisement announcing the opening of the school, $380.

d. Received applications from three students for a four-week secretarial program and two students for a ten-day keyboarding course. The students will be billed a total of $2,600.

e. Purchased supplies on credit, $660.

f. Billed the enrolled students, $3,480.

g. Purchased a second-hand computer, $960, and office equipment, $760, on credit.

h. Paid for the supplies purchased on credit in e, $660.

i. Paid cash to repair a broken computer, $80.

j. Received partial payment from students previously billed, $2,160.

k. Paid the utility bill for the current month, $180.

l. Paid an assistant one week's salary, $880.

m. Made a cash withdrawal of $600.

Required

1. Set up the following T accounts: Cash; Accounts Receivable; Supplies; Comput- ers; Office Equipment; Accounts Payable; B. Turner, Capital; B. Turner, Withdraw- als; Tuition Revenue; Salaries Expense; Utilities Expense; Rent Expense; Repair Expense; and Advertising Expense.

2. Record the transactions directly in the T accounts, using the transaction letter to identify each debit and credit.

3. Prepare a trial balance using today's date.

4. Business Application- Examine transactions f and j. What were the revenues and how much cash was received from the revenues? What business issues might you see arising from the differences in these numbers?