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Abe Shultz owns Kits & Pups Grooming and uses the following accounts: $$ \begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{205 Accounts Payable—}\\ \text{115 Accounts Receivable—} & \text{Dogs & Cats Inc.}\\ \text{Martha Giles} & \text{301 Abe Shultz, Capital}\\ \text{125 Office Equipment} & \text{ }\\ \text{130 Office Furniture} & \text{ }\\ \text{140 Grooming Equipment} & \text{ }\\ \end{matrix} $$ For each transaction: 1. In your working papers, prepare a T account for each account listed. 2. Using the appropriate T accounts, analyze and record each of the following business transactions. Identify each transaction by number. 3. After recording all transactions, write the word Balance on the normal balance side of each T account. Then compute and record the balance for each account. $$ \begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{May 1} & \text{1. Abe Shultz invested an additional $\$45,000$ cash in his business.}\\ \text{5} & \text{2. Bought grooming equipment on account from Dogs & Cats Inc. for $\$8,500$.}\\ \text{10} & \text{3. Purchased an office lamp for $\$85$, Check 150.}\\ \text{14} & \text{4. Abe Shultz transferred his personal typewriter, worth $\$200$, to the business.}\\ \text{19} & \text{5. Made a $\$3,000$ payment on the grooming equipment bought on account, Check 151.}\\ \text{22} & \text{6. Sold the typewriter on account to Martha Giles for $\$200$.}\\ \text{29} & \text{7. Bought a photocopier for $\$1,500$, Check 152.}\\ \text{31} & \text{8.Received a $\$100$ payment for the typewriter sold on account.}\\ \end{array} $$
The general ledger accounts and balances for Kits & Pups Grooming follow. $$ \begin{array}{ll} \mathbf{\text{General Ledger}} & \text{ }\\ \text{101 Cash in Bank} & \text{$\$ 4,296$}\\ \text{105 Accts. Rec. - Juan Alvarez} & \text{$1,528$}\\ \text{110 Accts. Rec. - Nathan Carlsbad} & \text{904}\\ \text{115 Accts. Rec. - Martha Giles} & \text{$1,219$}\\ \text{120 Grooming Supplies} & \text{$1,368$}\\ \text{125 Office Equipment} & \text{$8,467$}\\ \text{130 Office Furniture} & \text{$3,396$}\\ \text{135 Computer Equipment} & \text{$2,730$}\\ \text{140 Grooming Equipment} & \text{$1,974$}\\ \text{145 Kennel Equipment} & \text{$7,412$}\\ \text{201 Accts. Pay. - Able Store Equipment} & \text{$3,876$}\\ \text{205 Accts. Pay. - Dogs & - Cats Inc.} & \text{$2,746$}\\ \text{207 Accts. Pay. - Pet Gourmet} & \text{$1,281$}\\ \text{301 Abe Shultz, Capital} & \text{$30,928$}\\ \text{305 Abe Shultz, Withdrawals} & \text{$1,900$}\\ \text{310 Income Summary} & \text{\_\_\_}\\ \text{401 Boarding Revenue} & \text{$11,989$}\\ \text{405 Grooming Revenue} & \text{$4,420$}\\ \text{501 Advertising Expense} & \text{$3,934$}\\ \text{505 Equipment Repair Expense} & \text{943}\\ \text{510 Maintenance Expense} & \text{$2,483$}\\ \text{520 Rent Expense} & \text{$8,850$}\\ \text{530 Utilities Expense} & \text{$3,836$}\\ \end{array} $$ 1. Prepare a work sheet for the month ended September 30, 20--. 2. Prepare an income statement for the period. 3. Prepare a statement of changes in owner’s equity. Abe Shultz made an additional investment of $2,500 during the period. 4. Prepare a balance sheet in report form.
Abe Shultz, owner of Kits & Pups Grooming, uses the following accounts to record transactions for the month. $$ \begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{401 Boarding Revenue}\\ \text{105 Accounts Receivable—} & \text{405 Grooming Revenue}\\ \text{Juan Alvarez} & \text{501 Advertising Expense}\\ \text{140 Grooming Equipment} & \text{505 Equipment Repair Expense}\\ \text{205 Accounts Payable—} & \text{510 Maintenance Expense}\\ \text{Dogs & Cats Inc.} & \text{520 Rent Expense}\\ \text{301 Abe Shultz, Capital} & \text{530 Utilities Expense}\\ \text{305 Abe Shultz, Withdrawals} & \text{ }\\ \end{matrix} $$ For each transaction: 1. Prepare a T account for each account listed. 2. Enter a balance of $15,000 in the Cash in Bank account; also enter a balance of$15,000 in the Abe Shultz, Capital account. 3. Analyze and record each of the following business transactions, using the appropriate T accounts. Identify each transaction by number. 4. After all the business transactions have been recorded, write the word Balance on the normal balance side of each account. 5. Compute and record the balance for each account. $$ \begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 1} & \text{1. Purchased grooming equipment for $\$ 12,700,$ Check 283 .}\\ \text{10} & \text{2. Wrote Check 284 for advertising, $\$ 125$ .}\\ \text{12} & \text{3. Received $\$ 1,850$ cash for dog boarding services.}\\ \text{15} & \text{4. Paid $\$ 150$ for equipment repair, Check $285 .$}\\ \text{17} & \text{5. Purchased a dog cage on account from Dogs 8 - Cats Inc. for $\$ 75 .$}\\ \text{20} & \text{6. Abe Shultz withdrew $\$ 150$ for personal use, Check 286 .}\\ \text{22} & \text{7. Billed Juan Alvarez for $\$ 775$ covering grooming services for all of the dogs boarded at the kennels he owns. Payment will be received later.}\\ \text{23} & \text{8. Paid the first two weeks' rent by writing Check 287 for $\$ 325 .$}\\ \text{25} & \text{9. Paid the electric bill at a cost of $\$ 115,$ Check 288 .}\\ \end{array} $$
Question

A partial chart of accounts for Kits & Pups Grooming follows. $$ \begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{301 Abe Shultz, Capital}\\ \text{105 Accts. Rec.—J. Alvarez} & \text{305 Abe Shultz, Withdrawals}\\ \text{120 Grooming Supplies} & \text{401 Boarding Revenue}\\ \text{130 Office Furniture} & \text{405 Grooming Revenue}\\ \text{140 Grooming Equipment} & \text{525 Salaries Expense}\\ \text{205 Accts. Pay.—Dogs & Cats Inc.} & \text{ }\\ \end{matrix} $$ 1. In your working papers, open an account in the general ledger for each of these accounts. 2. Record the March transactions on page 1 of the general journal. 3. Post each journal entry to the appropriate ledger account. 4. Prove the ledger by preparing a trial balance. $$ \begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Mar 1} & \text{Abe Shultz invested $\$ 5,000$ in the business, Memorandum 51.}\\ \text{3} & \text{Abe Shultz transferred a desk and chairs valued at $\$ 1,200$ to the business, Memorandum 52.}\\ \text{5} & \text{Issued Check 551 for $\$ 300$ for grooming supplies.}\\ \text{7} & \text{Bought grooming equipment on account for $\$ 1,800$ from Dogs & Cats Inc., Invoice DC201.}\\ \text{9} & \text{Groomed Juan Alvarez's show dogs on account, $\$ 400,$ Sales Invoice 350.}\\ \text{12} & \text{Paid Dogs & Cats Inc. $\$ 900$ on account, Check 552.}\\ \text{15} & \text{Issued Check 553 for $\$ 500$ to pay the office secretary's salary.}\\ \text{18} & \text{Abe Shultz withdrew $\$ 1,000$ cash from the business, Check 554.}\\ \text{20} & \text{Deposited $\$ 1,400$ received from clients for boarding their pets, Receipts 477-480.}\\ \text{24} & \text{Wrote Check 555 for $\$ 900$ to Dogs & Cats Inc. to apply on account.}\\ \text{26} & \text{Received a check for $\$ 400$ from Juan Alvarez on account, Receipt 481.}\\ \end{array} $$

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