College Accounting 2nd Edition by David Haddock, John Price,Michael Farina

Exercise 34

Using T accounts to record transactions involving revenue and expenses.
The following transactions took place at China Express Laundry and Cleaners.
INSTRUCTIONS
Analyze each of the transactions. For each transaction, decide what accounts are affected and set up T accounts. Record the effects of the transaction in the T accounts. Use plus and minus signs before the amounts to show the increases and decreases.
TRANSACTIONS
1. Paid $3,800 for the current month's rent.
2. Performed services for $8,000 in cash.
3. Paid salaries of $5,600.
4. Performed additional services for $10,800 on credit.
5. Paid $1,200 for the monthly telephone bill.
6. Collected $4,000 from accounts receivable.
7. Received a $190 refund for an overcharge on the telephone bill.
8. Performed services for $5,200 on credit.
9. Paid $850 in cash for the monthly electric bill.
10. Paid $1,200 in cash for gasoline purchased for the firm's van during the month.
11. Received $4,200 from charge account customers.
12. Performed services for $8,600 in cash.
Analyze: What total cash was collected for Accounts Receivable during the month?