1674 words 7 pages
Computerized Accounting With



Chapters 1 through 7

Tracy Madding is an attorney opening her own office on March 1, 2010. She operates her business as a sole proprietorship. The office is located at 1345 Main Street, Lodi, CA 95240. The owner of the building, Apex Business Management, signed Tracy to a one-year lease for $800 per month. The IRS issued her an employer identification number of 15-6789545. Tracy called the local telephone company, Pacific Bell, and arranged for two lines: telephone 209-555-9899; fax 209-555-3211.

Tracy spoke with an accountant, and together they decided that Tracy should use the accrual method of accounting because she may, in the future, give
…show more content…

Use Vendor ID 009.

Billed $450 for consulting services to Henry James, 3467 Natural Rock Drive, Ceres, CA 95223. Use Customer ID 103, Invoice 203.

Mar. 25 Henry James paid $225 on account, reference 360.

Leased a copy machine for $225 per month from Xerox Copy Machines, 2332 Pacific Avenue, Stockton, CA 95210, paying 3 months in advance (check 014). Establish a new Prepaid Copier Expense account, number 109. Use Vendor ID 010. (Remember that a prepaid expense is an asset account.)

Received the balance from David Henry on account, reference 611.

Paid The Valley Register, 67 Forrest Glen Road, Modesto, CA 95352, for a newspaper ad, $600. Use Vendor ID 011 and check 015.

Performed $1,050 worth of consulting services for Jim Nelson, 2123 Woodward Lane, Lodi, CA 95240, Customer ID 104, receiving half the balance (reference 1820) immediately and placing remainder of the balance on account, Invoice 204.

Mar. 31 Paid the City of Lodi for the water bill of $45, issuing check 016.

Paid MID, 2334 March Lane, Modesto, CA 95355, for the utility bill of $57, issuing check 017. Use Vendor ID 012.

Paid Pacific Bell for the monthly telephone bill of $125, issuing check 018.

Received a postage bill of $27.50 from Pitney Bowes, issuing check 019. Establish a new account for Postage Expense, Account ID