Part 1:
Analyze and record, in the form of T Accounts, Mr. James’ transactions:
Jan 1: Amount invested in the business $10,000
Jan 7: Bought equipment for $500
Jan 9: Bought office furniture with $2,000 cash
Jan 10: Bought materials with $2,000 cash
Jan 17: Sold part of equipment for $200
Jan 18: Bought computer on credit for $1,000
Jan 19: Purchased office stationary for $100
Jan 25: Paid $700 cash toward computer purchased on credit
Guidelines for the assignment:
Identify the account
Classify the account
Identify (Debit or credit i.e. left side or right side) the appropriate side to record
Make an entry under the appropriate side
Part 2:
Union Company wants to prepare a worksheet for the month of December 2007. The following information was taken from the general ledger:
Number Account Amount
101 Cash $500
102 Accounts Receivable $1,500
104 Vehicle $7,500
105 Equipment $2,500
201 Accounts Payable $1,000
205 Ross Capital $10,000
300 Sales $5,000
301 Ad Expense $500
302 Insurance Expense $500
303 Rent Expense $1,000
304 Utilities Expense $500
305 Supplies Expense $1,500
Prepare a worksheet to include the following:
Heading
Account Numbers
Account Names
Trial Balance
Income Statement
Balance Sheet
Be sure to carry other the account totals to either the income statement or balance sheet.