Problem 3.5A (Algo) Preparing financial statements from T accounts. LO 3-3, 3-5, 3-6 The accountant for the firm owned by Vincent Sutton prepares financial statements at the end of each month Transactions:
a. Sutton invested $146,000 in cash to start the business.
b. Paid $4,600 for the current month's rent
c. Bought office furniture for $15,320 in cash,
d. Performed services for $8,600 in cash
e. Paid $1.110 for the monthly telephone bill.
f. Performed services for $14.400 on credit.
g. Purchased a computer and copler for $35.200; paid $11,600 in cash immediately with the balance due in 30 days.
h. Received $7,200 from credit clients.
i. Paid $2,600 in cash for office cleaning services for the month.
j. Purchased additional office chairs for $4.400, received credit terms of 30 days.
k. Purchased office equipment for $26,000 and paid half of this amount in cash immediately; the balance is due in 30 days
l. Issued a check for $8,000 to pay salaries.
m. Performed services for $14,900 in cash.
n. Performed services for $16,400 on credit
o. Collected $6,600 on accounts receivable from charge customers.
p. Issued a check for $2,200 in partial payment of the amount owed for office chairs.
q. Paid $560 to a duplicating company for photocopy work performed during the month.
r. Paid $1,080 for the monthly electric bill.
s. Sutton withdrew $7.600 in cash for personal expenses.
Required: Prepare a trial balance, an income statement, a statement of owner's equity, and a balance sheet. Assume that the transactions took place during the month ended June 30, 20X1. Determine the account balances before you start work on the financial statements.
