Bob Lutz opened a school called Best Drivers’ Education this month. a. Lutz contributed the following

Bob Lutz opened a school called Best Drivers’ Education this month.

a.  Lutz contributed the following assets to the business:

Cash $5,700

Computers 4,300

Office Equipment 3,600

 b. Found a location for his business and paid the first month’s rent, $260.

 c. Paid for an advertisement announcing the opening of the school, $190.

 d. Received applications from four students for drivers’ education. The students will be billed a total of $1,740.

 e. Purchased supplies on credit, $330.

 f. Billed the enrolled students, $1,740.

g. Purchased on credit a computer, $480 and office equipment, $380.

h. Paid for the supplies purchased on credit in e above, $330.

i. Paid cash to repair a broken computer, $40.

j. Received partial payment from students previously billed, $1,080.

k. Paid the utility bill for the current month, $90.

l. Paid receptionist’s one week salary, $440.

m. Made cash withdrawal of $300.

Required:

i.  Set up the following T accounts: Cash; Accounts Receivable; Supplies; Computers; Office Equipment; Accounts Payable; B. Lutz, Capital; B. Lutz, Withdrawals; Tuition Revenue; Salaries Expense; Utilities Expense; Rent Expense; Repair Expense; and Advertising Expense.

ii.  Record the transactions directly in the T accounts, using the transaction letter to identify each debit and credit.

iii.  Prepare a trial balance using end of current month’s date.