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Horngren'S Financial And Managerial Accounting
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Short Answer

Question: The following transactions occurred for Lawrence Engineering:

Jul. 2 Received $14,000 contribution from Brett Lawrence in exchange for common stock.

4 Paid utilities expense of $370.

5 Purchased equipment on account, $1,600.

10 Performed services for a client on account, $2,900.

12 Borrowed $7,100 cash, signing a notes payable.

19 Cash dividends of $200 were paid to stockholders.

21 Purchased office supplies for $840 and paid cash.

27 Paid the liability from July 5.

Requirements 1. Open the following T-accounts for Lawrence Engineering: Cash; Accounts Receivable; Office Supplies; Equipment; Accounts Payable; Notes Payable; Common Stock; Dividends; Service Revenue; and Utilities Expense.

Accounts receivables are amounts to the company and the T-Accounts are opened as required.

See the step by step solution

Step by Step Solution

Step-by-Step SolutionStep 1: Definition of Accounts Receivables

The accounts receivables are the amount owed to the business by the customers or clients in exchange for goods or services.

Step 2: Opening of T-Accounts

Cash

Jul 2 $ 14,000

$370 Jul 4

Jul 12 $7,100

$200 Jul 19

$840 Jul 21

$1,600 Jul 27

Accounts Receivables

Jul 10 $2,900

Office Supplies

Jul 21 $840

Equipment

Jul 5 $1,600

Accounts Payable

Jul 27 $1,600

$1,600 Jul 5

Notes Payable

$7,100 Jul 12

Common Stock

$14,000 Jul 2

Dividends

Jul 19 200

Service Revenue

$2,900 Jul 10

Utilities Expense

Jul 4 370

Most popular questions for Business-studies Textbooks

Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance

Terrence Murphy opened a law office on January 1, 2018. During the first month of operations, the business completed the following transactions:

Jan. 1 Murphy contributed $78,000 cash to the business, Terrence Murphy, Attorney. The business issued common stock to Murphy.

3 Purchased office supplies, $600, and furniture, $1,700, on account.

4 Performed legal services for a client and received $1,000 cash.

7 Purchased a building with a market value of $130,000, and land with a market value of $25,000. The business paid $25,000 cash and signed a note payable to the bank for the remaining amount.

11 Prepared legal documents for a client on account, $400.

15 Paid assistant’s semimonthly salary, $1,120.

16 Paid for the office supplies purchased on January 3 on account.

18 Received $2,700 cash for helping a client sell real estate.

19 Defended a client in court and billed the client for $1,800.

25 Received a bill for utilities, $600. The bill will be paid next month.

29 Received cash on account, $1,500.

30 Paid $1,200 cash for a 12-month insurance policy starting on February 1.

30 Paid assistant’s semimonthly salary, $1,120.

31 Paid monthly rent expense, $1,800.

31 Paid cash dividends of $2,200.

Requirements

2. Open the following four-column accounts including account numbers: Cash, 101; Accounts Receivable, 111; Office Supplies, 121; Prepaid Insurance, 131; Land, 141; Building, 151; Furniture, 161; Accounts Payable, 201; Utilities Payable, 211; Notes Payable, 221; Common Stock, 301; Dividends, 311; Service Revenue, 411; Salaries Expense, 511; Rent Expense, 521; and Utilities Expense, 531.

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