Connie Young, an architect, opened an office on October 1, 20Y4. During the month, she completed the following transactions connected with her professional practice:

1. Transferred cash from a personal bank account to an account to be used for the business, $43,200.
2. Paid October rent for office and workroom, $4,300.
3. Purchased used automobile for $28,000, paying $6,500 cash and giving a note payable for the remainder.
4. Purchased office and computer equipment on account, $8,600.
5. Paid cash for supplies, $2,070.
6. Paid cash for annual insurance policies, $2,900.
7. Received cash from client for plans delivered, $10,800.
8. Paid cash for miscellaneous expenses, $1,170.
9. Paid cash to creditors on account, $2,510.
10. Paid $350 on note payable.
11. Received invoice for blueprint service, due in November, $1,400.
12. Recorded fees earned on plans delivered, payment to be received in November, $7,500.
13. Paid salary of assistants, $2,300.
14. Paid gas, oil, and repairs on automobile for October, $560.

Required:

1. Record the above transactions (in chronological order) directly into the T accounts. To the left of the amount entered in the accounts, select the appropriate letter to identify the transaction.

2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.

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Cash
a.b.c.d.e.f.g.h.i.j.k.l.m.n.a.	fill in the blank d0ec1801300c00c_2	a.b.c.d.e.f.g.h.i.j.k.l.m.n.b.	fill in the blank d0ec1801300c00c_4
a.b.c.d.e.f.g.h.i.j.k.l.m.n.g.	fill in the blank d0ec1801300c00c_6	a.b.c.d.e.f.g.h.i.j.k.l.m.n.c.	fill in the blank d0ec1801300c00c_8
		a.b.c.d.e.f.g.h.i.j.k.l.m.n.e.	fill in the blank d0ec1801300c00c_10
		a.b.c.d.e.f.g.h.i.j.k.l.m.n.f.	fill in the blank d0ec1801300c00c_12
		a.b.c.d.e.f.g.h.i.j.k.l.m.n.h.	fill in the blank d0ec1801300c00c_14
		a.b.c.d.e.f.g.h.i.j.k.l.m.n.i.	fill in the blank d0ec1801300c00c_16
		a.b.c.d.e.f.g.h.i.j.k.l.m.n.j.	fill in the blank d0ec1801300c00c_18
		a.b.c.d.e.f.g.h.i.j.k.l.m.n.m.	fill in the blank d0ec1801300c00c_20
		a.b.c.d.e.f.g.h.i.j.k.l.m.n.n.	fill in the blank d0ec1801300c00c_22
Bal.	fill in the blank d0ec1801300c00c_23

Accounts Receivable
a.b.c.d.e.f.g.h.i.j.k.l.m.n.l.	fill in the blank d0ec1801300c00c_25

Supplies
a.b.c.d.e.f.g.h.i.j.k.l.m.n.e.	fill in the blank d0ec1801300c00c_27

Prepaid Insurance
a.b.c.d.e.f.g.h.i.j.k.l.m.n.f.	fill in the blank d0ec1801300c00c_29

Automobiles
a.b.c.d.e.f.g.h.i.j.k.l.m.n.c.	fill in the blank d0ec1801300c00c_31

Equipment
a.b.c.d.e.f.g.h.i.j.k.l.m.n.d.	fill in the blank d0ec1801300c00c_33

Accounts Payable
a.b.c.d.e.f.g.h.i.j.k.l.m.n.i.	fill in the blank d0ec1801300c00c_35	a.b.c.d.e.f.g.h.i.j.k.l.m.n.d.	fill in the blank d0ec1801300c00c_37
		a.b.c.d.e.f.g.h.i.j.k.l.m.n.k.	fill in the blank d0ec1801300c00c_39
		Bal.	fill in the blank d0ec1801300c00c_40

Notes Payable
a.b.c.d.e.f.g.h.i.j.k.l.m.n.j.	fill in the blank d0ec1801300c00c_42	a.b.c.d.e.f.g.h.i.j.k.l.m.n.c.	fill in the blank d0ec1801300c00c_44
		Bal.	fill in the blank d0ec1801300c00c_45

Connie Young, Capital
		a.b.c.d.e.f.g.h.i.j.k.l.m.n.a.	fill in the blank d0ec1801300c00c_47

Professional Fees
		a.b.c.d.e.f.g.h.i.j.k.l.m.n.g.	fill in the blank d0ec1801300c00c_49
		a.b.c.d.e.f.g.h.i.j.k.l.m.n.l.	fill in the blank d0ec1801300c00c_51
		Bal.	fill in the blank d0ec1801300c00c_52

Salary Expense
a.b.c.d.e.f.g.h.i.j.k.l.m.n.m.	fill in the blank d0ec1801300c00c_54

Blueprint Expense
a.b.c.d.e.f.g.h.i.j.k.l.m.n.k.	fill in the blank d0ec1801300c00c_56

Rent Expense
a.b.c.d.e.f.g.h.i.j.k.l.m.n.b.	fill in the blank d0ec1801300c00c_58

Automobile Expense
a.b.c.d.e.f.g.h.i.j.k.l.m.n.n.	fill in the blank d0ec1801300c00c_60

Miscellaneous Expense
a.b.c.d.e.f.g.h.i.j.k.l.m.n.h.	fill in the blank d0ec1801300c00c_62

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Feedback

1. and 2. First, identify what account is used and then what type of account is used. Every account is either an asset, liability, capital, withdrawal, revenue, or expense account. Every transaction involves at least two accounts. Then determine whether the account increases or decreases. Each increase or decrease is recorded as a debit or credit in the T-accounts, following the rules of debit and credit. Net debits against credits to determine the balance and double-check to see if it is a normal balance for that account classification.

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3. Prepare an unadjusted trial balance for Connie Young, Architect, as of October 31, 20Y4. For those boxes in which no entry is required, leave the box blank.

	Debit Balances	Credit Balances
Accounts PayableCashConnie Young, CapitalNotes PayableProfessional FeesCash	Cash	Cash
Accounts PayableAccounts ReceivableConnie Young, CapitalNotes PayableProfessional FeesAccounts Receivable	Accounts Receivable	Accounts Receivable
Accounts PayableConnie Young, CapitalNotes PayableProfessional FeesSuppliesSupplies	Supplies	Supplies
Accounts PayableConnie Young, CapitalNotes PayablePrepaid InsuranceProfessional FeesPrepaid Insurance	Prepaid Insurance	Prepaid Insurance
Accounts PayableAutomobilesConnie Young, CapitalNotes PayableProfessional FeesAutomobiles	Automobiles	Automobiles
Accounts PayableEquipmentConnie Young, CapitalNotes PayableProfessional FeesEquipment	Equipment	Equipment
Accounts PayableAccounts ReceivableCashEquipmentRent ExpenseAccounts Payable	Accounts Payable	Accounts Payable
Accounts ReceivableBlueprint ExpenseCashNotes PayableSalary ExpenseNotes Payable	Notes Payable	Notes Payable
Accounts ReceivableBlueprint ExpenseConnie Young, CapitalPrepaid InsuranceSalary ExpenseConnie Young, Capital	Connie Young, Capital	Connie Young, Capital
Accounts PayableAutomobilesAutomobile ExpenseCashProfessional FeesProfessional Fees	Professional Fees	Professional Fees
Accounts PayableConnie Young, CapitalNotes PayableProfessional FeesSalary ExpenseSalary Expense	Salary Expense	Salary Expense
Accounts PayableBlueprint ExpenseConnie Young, CapitalNotes PayableProfessional FeesBlueprint Expense	Blueprint Expense	Blueprint Expense
Accounts PayableConnie Young, CapitalNotes PayableProfessional FeesRent ExpenseRent Expense	Rent Expense	Rent Expense
Accounts PayableAutomobile ExpenseConnie Young, CapitalNotes PayableProfessional FeesAutomobile Expense	Automobile Expense	Automobile Expense
Accounts PayableConnie Young, CapitalMiscellaneous ExpenseNotes PayableProfessional FeesMiscellaneous Expense	Miscellaneous Expense	Miscellaneous Expense
	fill in the blank 36951604a01ffcf_46	fill in the blank 36951604a01ffcf_47

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Feedback

3. The trial balance lists the ending balance of each account in a corresponding Debit or Credit column. The trial balance column totals should be equal.

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4. Determine the net income or net loss for October.

Net incomeNet lossNet income

$fill in the blank db8782027008f8b_2