Question

Question:The following transactions occurred for Lawrence Engineering:

Jul. 2 Received \(14,000 contribution from Brett Lawrence in exchange for common stock.

4 Paid utilities expense of \)370.

5 Purchased equipment on account, \(1,600.

10 Performed services for a client on account, \)2,900.

12 Borrowed \(7,100 cash, signing a notes payable.

19 Cash dividends of \)200 were paid to stockholders.

21 Purchased office supplies for $840 and paid cash.

27 Paid the liability from July 5.

Requirements 1. Open the following T-accounts for Lawrence Engineering: Cash; Accounts Receivable; Office Supplies; Equipment; Accounts Payable; Notes Payable; Common Stock; Dividends; Service Revenue; and Utilities Expense.

Short answer

Accounts receivables are amounts to the company and the T-Accounts are opened as required.

Step-by-step solution

Step-by-Step SolutionStep 1: Definition of Accounts Receivables

The accounts receivables are the amount owed to the business by the customers or clients in exchange for goods or services.

Opening of T-Accounts

Cash
Jul 2 $ 14,000	$370 Jul 4
Jul 12 $7,100	$200 Jul 19
	$840 Jul 21
	$1,600 Jul 27

Accounts Receivables
Jul 10 $2,900

Office Supplies
Jul 21 $840

Equipment
Jul 5 $1,600

Accounts Payable
Jul 27 $1,600	$1,600 Jul 5

Notes Payable
	$7,100 Jul 12

Common Stock
	$14,000 Jul 2

Dividends
Jul 19 200

Service Revenue
	$2,900 Jul 10

Utilities Expense
Jul 4 370