PROBLEM 1-6A

(a)

June 1
2
3
7
8
15
22
25
30
30
30
30

LEANNES TRAVEL AGENCY

Cash +
+$23,000
3,000
2,500
675

Acc.
Rec.

Sup+ plies

Prepaid
Ins.

Account
Equips
Note
L. Aiken, L. Aiken,
+ ment = Payable + Payable + Capital Drawings +
+$23,000
+$6,800
+$3,800

Revenues

$2,500
+$675
+$300

+3,500
1,500
300
5,750

Ex penses

300
+$11,000

+$7,500
$1,500
300

5,750
300

+300
+6,000
6,000
+$2,400
2,400
______
00 0
$16,375 + $ 1,500 + $675 + $2,400 +

0_0 0
$6,800 =

0
$300 +

$27,750 = $27,750

000 0
$3,800 +

___0000
00 __ 0
00 000
00000
$23,000 $1,500 + $11,000 $8,850

PROBLEM 1-6A (Continued)

(b) Capital Investment ...................................................... $23,000
Less: Drawings ..........................................................
1,500
21,500
Add: Revenue ............................................................ 11,000
Less: Expenses .......................................................... (8,850)
L. Aiken, Capital, June 30 ........................................... $23,650
Taking It Further:
$300 should be reported as an asset, Supplies, on the June 30 balance sheet. This is the amount
of supplies on hand. $375 should be reported as an expense. This is the amount of supplies
that were actually used in the month of June.