17E_1 - Horngren'S Financial And Managerial Accounting

Question

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.

Step-by-Step Solution

Answer

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

Step-by-Step Solution Step 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

 

Accounts Receivables

 

Office Supplies

 

Equipment

 

Accounts Payable

 

Notes Payable

 

Common Stock

 

Dividends

 

Service Revenue

 

Utilities Expense