T.J. Chan, an engineering consultant, decided to begin a business of his own. Chan has set up the following chart of accounts to be used in his business. Transactions On March 1, 20–, when T.J. began his business, he invested in the business a bank balance of $8000, an automobile worth $14 000, and equipment costing $6000. DON’T FORGET TO CALCULATE THE OPENING CAPITAL BALANCE. (Remember the fundamental accounting equation!!) Issued cheque for $465 to Royalty Trust Co. in payment of the monthly rent. Issued cheque for $200 to the owner for personal use. Received a bill in the amount of $900 from Eustace Bros. for office supplies purchased on account. Issued cheque for $350 to West End Garage as payment for repairs to the owner’s personal car. Issued bill to F. Morsi for services performed, $500. Issued cheque for $400 to pay the office secretary’s weekly wage. Received an invoice for $90 from Regal Oil for gasoline and oil used in the business automobile, due in 30 days. Received a memorandum stating that $50 had been deducted by the bank from the business’s account to cover bank charges for the month. Issued cheque for $150 to the City Telephone Company in payment of the telephone bill that arrived today. Issued bill to M. Armota for services performed, $800. Received $250 cash from C. Fuda to pay for services performed. Purchased a magazine subscription for the office for $75, paid by cheque.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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T.J. Chan, an engineering consultant, decided to begin a business of his own. Chan has set up the following chart of accounts to be used in his business.

Transactions

On March 1, 20–, when T.J. began his business, he invested in the business a bank balance of $8000, an automobile worth $14 000, and equipment costing $6000.

**DON’T FORGET TO CALCULATE THE OPENING CAPITAL BALANCE. (Remember the fundamental accounting equation!!) **

Issued cheque for $465 to Royalty Trust Co. in payment of the monthly rent.
Issued cheque for $200 to the owner for personal use.
Received a bill in the amount of $900 from Eustace Bros. for office supplies purchased on account.
Issued cheque for $350 to West End Garage as payment for repairs to the owner’s personal car.
Issued bill to F. Morsi for services performed, $500.
Issued cheque for $400 to pay the office secretary’s weekly wage.
Received an invoice for $90 from Regal Oil for gasoline and oil used in the business automobile, due in 30 days.
Received a memorandum stating that $50 had been deducted by the bank from the business’s account to cover bank charges for the month.
Issued cheque for $150 to the City Telephone Company in payment of the telephone bill that arrived today.
Issued bill to M. Armota for services performed, $800.
Received $250 cash from C. Fuda to pay for services performed.
Purchased a magazine subscription for the office for $75, paid by cheque.

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