Hello,

I really don't know where to begin

Travis Fortney, an architect, opened an office on April 1, 2010. During the month, he completed the following transactions connected with his professional practice:

a.Transferred cash from a personal bank account to an account to be used for the business, $37,200.
b.Purchased used automobile for $24,000, paying $5,600 cash and giving a note payable for the remainder.
c.Paid April rent for office and workroom, $3,700.
d.Paid cash for supplies, $1,790.
e.Purchased office and computer equipment on account, $7,400.
f.Paid cash for annual insurance policies on automobile and equipment, $2,500.
g.Received cash from a client for plans delivered, $9,300.
h.Paid cash to creditors on account, $2,160.
i.Paid cash for miscellaneous expenses, $600.
j.Received invoice for blueprint service, due in May, $1,200.
k.Recorded fee earned on plans delivered, payment to be received in May, $6,400.
l.Paid salary of assistant, $2,000.
m.Paid cash for miscellaneous expenses, $410.
n.Paid installment due on note payable, $300.
o.Paid gas, oil, and repairs on automobile for April, $480.
1. Record the above transactions directly into the T accounts in the attached spreadsheet, without journalizing. To the left of the amount entered in the accounts, place the appropriate letter to identify the transaction.

2. Determine the balances of the T accounts (on attached spreadsheet) having two or more debits or credits. A memorandum balance should be inserted in accounts having both debits and credits, in the manner illustrated in the chapter.

3. Prepare an unadjusted trial balance for Travis Fortney, Architect, as of April 30, 2010. For those boxes in which no entry is required, leave the box blank.

Well, well, well! Looks like Travis Fortney, the architect, had quite an eventful month, didn't he? Let's get started with these transactions and have some fun!

1. T Accounts:

So, Travis started by transferring cash from his personal bank account to his business account. Let's call this transaction "A." He transferred a whopping $37,200. That's a lot of moolah! 🤑

Then, Travis went on to purchase a used car for his business, giving a note payable for the remaining amount. Let's call this transaction "B." He paid $5,600 in cash and got the car for a total of $24,000. That's a good deal, I hope!

Next up, Travis paid his April rent for his office and workroom. Let's call this transaction "C." He shelled out $3,700 for housing his creativity. That's a lot of square footage to fill with awesome architectural ideas!

Travis also had to buy some supplies for his work. Let's call this transaction "D." He used $1,790 of his hard-earned cash to stock up on supplies. Gotta keep those creative juices flowing!

Moving on, Travis decided to invest in some office and computer equipment on account. Let's call this transaction "E." He bought the equipment for $7,400 and didn't pay cash right away. I hope this new gear boosts his productivity!

Travis also had to be responsible and pay for his annual insurance policies on his automobile and equipment. Let's call this transaction "F." He handed over $2,500 in cash to protect those valuable assets. Safety first!

Oh, look! A client paid Travis for some plans he delivered. Let's call this transaction "G." The client handed over $9,300 in sweet cash. That's what I call a happy payday!

Travis also had to pay some cash to his creditors on account. Let's call this transaction "H." He paid a total of $2,160 to keep those relationships smooth. No late fees here!

Our architect didn't forget about miscellaneous expenses! Let's call this transaction "I." Travis paid $600 in cash for some unexpected surprises. Life is full of surprises, isn't it?

Oops! Travis received an invoice for blueprint service due in May. Let's call this transaction "J." The invoice amount is $1,200, so he'll have to pay up next month. Better budget for that, Travis!

Travis also recorded a fee he earned on plans delivered, but he won't receive payment until May. Let's call this transaction "K." The fee earned is $6,400. Looks like May is going to be a profitable month for Travis!

Time to pay the salary of his assistant. Let's call this transaction "L." Travis paid $2,000 in cash to keep the team happy. Good bosses pay on time!

Uh-oh, more miscellaneous expenses! Let's call this transaction "M." Travis paid $410 in cash for some more unexpected surprises. Are these surprises ever going to end?

Travis had to make an installment payment on his note payable. Let's call this transaction "N." He paid $300 to chip away at that debt. Keep hustling, Travis!

Lastly, Travis paid for gas, oil, and repairs on his trusty automobile. Let's call this transaction "O." He paid $480 in cash to keep his wheels rolling. Gotta keep that car in tip-top shape!

Phew! That was quite a journey through all those transactions. Now let's move on to the next steps. Keep watching, folks!

2. Balances of T Accounts:

Okay, let's check which T accounts have two or more debits or credits. Those accounts need some extra attention!

- Memorandum balance (inserted in accounts with both debits and credits)

3. Unadjusted Trial Balance:

Now, let's prepare an unadjusted trial balance for Travis Fortney, Architect, as of April 30, 2010. Remember, some boxes might be left blank if there's no entry required. So, brace yourselves, here it comes!

Will Travis Fortney's architectural dreams come true? Stay tuned for the next episode of "The Adventures of Travis Fortney, Architect"!

To record the transactions in the T accounts, follow these steps:

1. Open the attached spreadsheet and locate the T accounts for Travis Fortney, Architect.

2. For transaction (a), transfer cash from a personal bank account to the business account, you would debit the Cash account and credit the Owner's Equity account with the amount of $37,200. Enter "a" next to the amount in both the Debit and Credit columns of these accounts.

3. For transaction (b), where Travis purchased a used automobile, debit the Automobile account for $24,000 and credit the Cash account for $5,600. Enter "b" next to the amount in the Debit column of the Automobile account and next to the amount in the Credit column of the Cash account.

4. The remaining amount ($18,400) from the automobile purchase is paid using a note payable. Debit the Automobile account for $18,400 and credit the Notes Payable account for the same amount. Enter "b" next to the amount in the Debit column of the Automobile account and "b" next to the amount in the Credit column of the Notes Payable account.

5. Repeat the above steps for transactions (c) through (o), recording the respective debits and credits in the appropriate T accounts. Make sure to label each entry with the corresponding letter for each transaction.

To determine the balances of the T accounts with two or more debits or credits, follow these steps:

1. Look for T accounts that have multiple entries in either the Debit or Credit columns, ignoring the transaction labels.

2. Calculate the total amount of debits and credits separately for each account.

3. If a T account has more debits than credits, subtract the total credit amount from the total debit amount and write the result in the Credit column. If it has more credits than debits, subtract the total debit amount from the total credit amount and write the result in the Debit column.

4. Insert a memorandum balance in T accounts that have both debit and credit amounts, indicating that the account is out of balance.

To prepare an unadjusted trial balance, follow these steps:

1. Create a new table listing all the T accounts and their respective balances.

2. Transfer the balances from the T accounts to the trial balance table, omitting any T accounts with only memorandum balances.

3. Calculate the total of the Debit and Credit columns separately.

4. Verify that the total Debit amount equals the total Credit amount. If they match, the trial balance is balanced.

5. If the total does not balance, double-check the account balances and make any necessary corrections.

6. Leave any boxes in which no entry is required blank.

Once you have followed these steps, you should have successfully recorded the transactions in the T accounts, determined the balances of the accounts, and prepared an unadjusted trial balance for Travis Fortney, Architect, as of April 30, 2010.

To complete this task, you will need to follow several steps:

1. Create T accounts for the following accounts: Cash, Automobile, Notes Payable, Rent Expense, Supplies, Accounts Payable, Office and Computer Equipment, Insurance Expense, Accounts Receivable, Miscellaneous Expenses, Unearned Revenue, Salary Expense, Blueprint Service Expense, and Gas, Oil, and Repairs Expense. These accounts will be used to record the transactions.

2. Record each transaction directly into the appropriate T account using the letter provided to identify the transaction. For example, in the Cash T account, record transaction a as a debit (increase) of $37,200.

3. After recording all the transactions, analyze each T account and determine the balance. If there are two or more debits or credits in a T account, insert a memorandum balance, which is the difference between the total debits and credits. For T accounts with only one debit or credit, simply write the amount without a memorandum balance.

4. Prepare an unadjusted trial balance by summarizing the balances of all the T accounts as of April 30, 2010. Transfer the balances to the trial balance worksheet, leaving the boxes empty where no entry is required.

By following these steps, you can accurately record the transactions, determine the balances of the T accounts, and prepare an unadjusted trial balance for Travis Fortney, Architect, as of April 30, 2010.