the chart of accounts of clara s design service of montreal includes the following c 4375093

The chart of accounts of Clara’s Design Service of Montreal includes the following: Cash, 111; Accounts Receivable, 112; Office Equipment, 121; Design Equipment, 122; Accounts Payable, 211; Clara Benson, Capital, 311; Clara Benson, Withdrawals, 312; Design Fees Earned, 411; Advertising Expense, 511; Repair Expense, 512; Salaries Expense, 513; and Telephone Expense, 514. The following transactions occurred for Clara’s Design Service during the month of March 2014: A. Clara invested $33,000 in the business from her personal savings account. B. Bought design equipment on account, $14,000. C. Advertising bill was received but not yet paid, $1,150. D. Bought office equipment for cash, $3,300. E. Received cash for design services rendered, $5,900. F. Paid salaries expense, $1,720. G. Paid repair expense for design equipment, $320. H. Billed customers for design services rendered, $4,300. I. Paid telephone bill, $150. J. Received $2,000 as partial payment of transaction H. K. Clara paid home telephone bill from company bank account, $66. L. Paid $700 on the bill received in transaction C. As Clara’s newly employed accountant, your task is to: 1. Setup T accounts in a ledger. 2. Record transactions in the T accounts. (Place the letter of the transaction next to the entry.) 3. Foot the T accounts where appropriate. 4. Prepare a trial balance for the end of March 2014. 5. Prepare from the trial balance, in proper form. a. An income statement for the month of March. b. A statement of owner’s equity for the month ended March 31. c. A balance sheet as of March 31, 2014. View Solution:
The chart of accounts of Clara s Design Service of Montreal

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