Ransactions: 1. Tran Lee invested $15,000 cash in the business.
2. Paid $750 rent for the month.
3. Purchased sewing equipment for $1,750.
4. Purchased sewing supplies, $250, on account from Eastern Notions Company.
5. Received $189 for alterations.
6. Completed a large tailoring job and received $1,149 for services.
7. Tran Lee withdrew $200 for personal use.
8. Did tailoring work on account for $256.
9. Paid $150 on account owed to Eastern Notions Company.

(1) Prepare a T account for each account used by Lee's Tailoring Service.
(2) Analyze each transaction and record the transaction in the appropriate T accounts.
(3) After recording all the transactions, compute the balance of each account. Indicate the normal
balance by writing "Balance" on the normal balance side of the account.
(4) Test the equality of debits and credits.
(Record the transactions in the given order. Be sure to list the assets, liabilities and owner's equity in order of their liquidity. Omit the "$" sign in your response.)

General Ledger
Cash in Bank

(1)
$
15,000

(2)
$
750

(5)
189

(3)
1,750

(6)
1,149

(7)
200

(9)
150

Balance $
13,488

Accounts Receivable

(8)
$
256

Balance $
256

Sewing Supplies

(4)
$
250

Balance $
250

Sewing Equipment

(3)
$
1,750

Balance $
1,750

Accounts Payable

(9)
$
150

(4)
$
250

Balance $
100

Tran Lee, Capital

(1)
$
15,000

Balance $
15,000

Tran Lee, Withdrawals

(7)
$
200

Balance $
200

Tailoring Fees

(5)
$
189

(6)
1,149

(8)
256

Balance $
1,594

Rent Expense

(2)
$
750

Balance $
750

Account Name Debit Credit

Cash in Bank
$
13,488

Accounts Receivable
$256

Sewing Supplies
$250

Sewing Equipment
$1,750

Accounts Payable
$100

Rent Expense
750

$
30,338

Cash in Bank
$
$13,488

Accounts Payable

$100

Tran Lee, Capital

$15,000

$
28,588

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