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

T-account shown in step 2.

Step-by-step solution

Step-by-Step SolutionStep 1: Definition of common stock

Common stocks are defined as the stocks or shares which represent the ownership of the business.

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
Bal. $18,090

Accounts Receivables
Jul 10 $2,900
Bal. $2,900

Office Supplies
Jul 21 $840
Bal. $840

Equipment
Jul 5 $1,600
Bal. $1,600

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

Notes Payable
	$7,100 Jul 12
	$7,100 Bal.

Common Stock
	$14,000 Jul 2
	$14,000 Bal.

Dividends
Jul 19 $200
Bal. $200

Service Revenue
	$2,900 Jul 10
	$2,900 Bal.

Utilities Expense
Jul 4 $370
Bal. $370