L. da Vinci opened a renovation business called Renaissance Renovations on September 3,
2003. During the first month of operations, the business completed the following transactions
Sept. 3 L. da Vinci deposited his cheque for $35,000 into the business bank account.
The business gave da Vinci owner’s equity in the business.
4 Purchased supplies, $200, and furniture, $1,800, on account.
5 Paid September rent expense, $500.
6 Performed design services for a client and received $4,000 cash.
7 Paid $15,000 cash to acquire land for a future office site.
10 Designed a bathroom for a client, billed the client, and received her promise to pay the $1,000
within one week.
14 Paid for the furniture purchased September 4 on account.
15 Paid assistant’s salary, $600.
17 Received partial payment from client on account, $500.
20 Prepared a recreation room design for a client on account, $1,800.
28 Received $1,500 cash from a client for renovation of a cottage.
30 Paid assistant’s salary, $600.
30 L. da Vinci withdrew $2,400 for personal use.
Required
Open the following T-accounts: Cash; Accounts Receivable; Supplies; Furniture;
Land; Accounts Payable; L. da Vinci, Capital; L. da Vinci, Withdrawals; Service
Revenue; Rent Expense; Salary Expense.
1. Record each transaction in the journal, using the account titles given. Key each transaction by
date. Explanations are not required.
2. Post the transactions to the T-accounts, using transaction dates as posting references in the
T-accounts. Label the balance of each account Bal.
3. Prepare the trial balance and financial statements of Renaissance Renovations at September
30, 2003.