Question

The following occurred during June at Hicks Family Counseling.

Post the following transactions into the appropriate T accounts.

Transactions:

Purchased office supplies for $1,400 in cash.

Delivered monthly statements, collected fee income of $29,000.

Paid the current month’s office rent of $3,400.

Completed professional counseling, billed client for $4,600.

Client paid fee of $2,600 for weekly counseling, previously billed.

Paid office salaries of $3,000.

Paid telephone bill of $420.

Billed client for $3,600 fee for preparing a counseling evaluation.

Purchased office supplies of $940 on account.

Paid office salaries of $3,000.

Collected $3,600 from client who was billed.

Clients paid a total of $9,700 cash in fees.

Analyze:
How much cash did the business spend during the month? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.

Answer 1

1. Preparing Journal Entries occurred during June at Hicks Family Counselling:-

Hicks Family Counselling

General Journal

For the Month of June

No.	Accounts	Debit	Credit
1	Office Supplies	$1,400
	Cash		$1,400
2	Cash	$29,000
	Service Revenue		$29,000
3	Rent Expense	$3,400
	Cash		$3,400
4	Accounts Receivable	$4,600
	Service Revenue		$4,600
5	Cash	$2,600
	Accounts Receivable		$2,600
6	Salaries Expense	$3,000
	Cash		$3,000
7	Telephone Bill Expense	$420
	Cash		$420
8	Accounts Receivable	$3,600
	Service Revenue		$3,600
9	Office Supplies	$940
	Accounts Payable		$940
10	Salaries Expense	$3,000
	Cash		$3,000
11	Cash	$3,600
	Accounts Receivable		$3,600
12	Cash	$9,700
	Service Revenue		$9,700

Posting the Transaction into Appropriate T accounts:-

Cash

No.	Debit	Credit	Balance
1		($1,400)	$(1,400)
2	$29,000		$27,600
3		($3,400)	$24,200
5	$2,600		$26,800
6		$(3,000)	$23,800
7		$(420)	$23,380
10		$(3,000)	$20,380
11	$3,600		$23,980
12	$9,700		$33,680

Accounts Receivable

No.	Debit	Credit	Balance
4	$4,600		$4,600
5		$(2,600)	$2,000
8	$3,600		$5,600
11		$(3,600)	$2,000

Office Supplies

No.	Debit	Credit	Balance
1	$1,400		$1,400
9	$940		$2,340

Accounts Payable

No.	Debit	Credit	Balance
9		$940	$940

Service Revenue

No.	Debit	Credit	Balance
2		$29,000	$29,000
4		$4,600	$33,600
8		$3,600	$37,200
12		$9,700	$46,900

Rent Expense

No.	Debit	Credit	Balance
3	$3,400		$3,400

Salaries Expense

No.	Debit	Credit	Balance
6	$3,000		$3,000
10	$3,000		$6,000

Telephone bill Expense

No.	Debit	Credit	Balance
7	$420		$420

Preparing Unadjusted Trial Balance:-

Hicks Family Counselling

Unadjusted Trial Balance

For the Month of June

Accounts	Debit	Credit
Cash	$33,680
Accounts Receivable	2,000
Office Supplies	2,340
Accounts Payable		$940
Service Revenue		46,900
Rent Expense	3,400
Salaries Expense	6,000
Telephone bill Expense	420
Total	$47,840	$47,840

Analyze:-

The amount of cash the Business spend during the Month is $11,220 ($1,400+$3,400+$3,000+$420+$3,000).