Activity 3. (Friendly Trucking) compril 1, 2016, Nels Ferrer organized a business called Friendly trucking. During April, the company entered into the following transactions: April 1 Nels Ferrer deposited 500 000 cash in a bank account in the name of the business. April 1 Purchased for P250 000 a transportation equipment to be use in the business. Nels paid 50% as down payment while the balance will be paid on May 15 2016. Paid rental for the month of April, 5 000. Earned and collected trucking income from Ryan, 8 000. Earned trucking income from Jesper, 30 000 on account. Jesper will pay on May 8, 2016. Paid salaries of drivers, 10 000. Rented the vehicle to Joshua for 35 000, Joshua paid P20 000 on the dte and the balance on April 20 Paid electric bills for the month, 2 000. Collected from Joshua the balance of his April 15 account. Purchased office supplies, P2 300. Earned and collected trucking income from Jay, 18 000. April 1 April 5 April 8 April 10 April 15 April 18 April 20 April 25 April 29 Instructions: a. Journalize the above transactions b. Post to ledger using the T-account format C. Prepare the unadjusted trial balance, as of April 30, 2016
Q: P3-5B Bob Royce incorporated Royce Consulting, an accounting tice, on May 1, 2014. During the first…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1 GOMEZ HAPPY TOUR AND TRAVEL The following…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Marichu Fornolles Guardians completed the following transactions during October 2014. Oct. 1…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: JOURNALIZE THE FOLLOWING TRANSACTIONS: 2017 June 1- Peter invested cash amounting to Php 100,000 to…
A: Journalizing the transaction is the recording of the transaction for the proper preparation and…
Q: a. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $82,000 in…
A: General journal is used to record each transaction in the accounting records of a business. Every…
Q: Question1: On July 1, 2016, Pat Glenn established Half Moon Realty. Pat completed the following…
A: The accounting equation is written as Assets = Liabilities +Owner's Equity
Q: P1-4A Trixie Maye started her own consulting firm, Matrix Consulting, on May 1, 2017. Analyze…
A: An accounting equation is a mathematical representation of the transactions. It indicated that total…
Q: Teddy Fedor a Gold and DriIving Range business on July 1, 2014. The following transactions occurred…
A: The accounting equation states that assets equal to sum of liabilities and equity.
Q: Activity 2. The entity complete the following transactions in September 2020. Prepare journalizing,…
A: 1. Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Q: 5. Falske Computer Timeshare Company entered into the following transactions during May 2017. 1.…
A: Formula: Accounting Equation: Assets = Liabilities + shareholders equity.
Q: E3-18 Comparing cash and accrual basis accounting and applying the revenue recognition principle…
A: According to the recognition concept of accounting, revenues and expenses are recognized when earned…
Q: Question Hyun Bin opened his computer repair services shop on November 30, 2018. The following…
A: Income statement: It is one of the financial statements prepared by an organization. This statement…
Q: P3-5B Bob Royce incorporated Royce Consulting, an accounting tice, on May 1, 2014. During the first…
A: Following are the requisite Ledger accounts and Trial Balance
Q: Make a Financial transaction worksheet that summarizes the effects of these transactions on the…
A: Solution Concept Accounting equation is expressed as Asset = liabilities + equity Assets include…
Q: July 1 Asif opened the business by investing OMR 192,000. July 2 Purchased Computers for OMR 20,000…
A: As per protocol we provide solution to one question but as you have asked multiple and the journal…
Q: INMACULATA TRUCKING., INC. On April 1, 2020, Marie France organized a business called Inmaculata…
A: Trial balance presents the balance of all the ledger accounts. Trial balance is prepared to find any…
Q: Analyze the transactions and prepare a journal entry for each transaction. 1. The Sunflower…
A: Journal is the primary book where transactions are originally recorded. Further, a journal entry is…
Q: The following transactions occurred for Baker Suleiman Co Sep 1 The business received cash of OMR…
A: A journal entry helps in recording of the business transactions and it is the first step of…
Q: The following transactions apply for Long Traders for February 2015. *Received a loan from AT&T…
A: Equity- Equity, usually referred to as investors equity (or owners' equity for secretly held…
Q: P2-3A Maquoketa Services was formed on May 1, 2017. The following transactions took place during…
A:
Q: Mohammed started a delivery company in Muscat in June 2018 (Mohammed Delivery Service). During the…
A: The accounting equation states that assets equal to sum of liabilities and equity.
Q: These are T accounts Collins Consignment Sales Company Prepare three financials statements The…
A: As you have posted two independent questions, we are answering the first question. Kindly repost the…
Q: Zahrah opened a laundry shop, Clean Laundry Shop on 1 April 2020. The following transactions were…
A: The accounting equation is written as : Assets = Liabilities + Owner's Equity
Q: 5. Falske Computer Timeshare Company entered into the following transactions during May 2017. 1.…
A: This question deals with the balance sheet equation. Balance sheet equation means a, Asset =…
Q: The following transactions apply for Long Traders for February 2015. *Received a loan from AT&T…
A: Equity is the amount which is owed to shareholder by the company if the company is about to wind up…
Q: 5. On September 1ª 2020 Mr. SAM started new repair service business. Listed below are the…
A: Trial balance is the statement prepared to get the balance of all the accounts at one single place.…
Q: 1) Englard Realty had the following transactions during 2016. (a) On November 1, the owner invested…
A: The T-accounts are prepared to record the balance of each accounts separately using the journal…
Q: business offers services in computer consultancy. The following is a list of transaction Hafiz has…
A: Note: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts…
Q: 1Adjusted Balance 2.UnadjustedBalance
A: 1.
Q: 1. Required, Journalize these transactions in General Journal Post these entries to the Ledger…
A: Journal entries:
Q: On April 1, 2020, Nels Ferrer organized a business called Friendly Trucking. During April, company…
A: Journal entry: It is also called as book of original entry. It is used to record a financial…
Q: Draft the financial statements and show the accounting journal entries for year-end
A: The Passing of the Journal Entry is the First step for the Recording of Transactions in the…
Q: Ahmad started his own Computer service on January 1, 2020. The following transactions occurred…
A: 1) Accounting Equation: Assets - liabilities = owners' Equity. Owner's Equity = $ 203000.
Q: Hyun Bin opened his computer repair services shop on November 30, 2018. The following transactions…
A: Journal entry: It is also called as book of original entry. All financial transactions occurred in a…
Q: Hyun Bin opened his computer repair services shop on November 30, 2018. The following transactions…
A: Financial statements consists of the following:- Statement of Financial position; Income Statement;…
Q: Hyun Bin opened his computer repair services shop on November 30, 2018. The following transactions…
A: 1. Record each of the summary transactions listed above:
Q: Hyun Bin opened his computer repair services shop on November 30, 2018. The following transactions…
A: Journal entry: It is also called as book of original entry. All financial transactions occurred in a…
Q: Use the following information to answer Exercises E2- The following transactions occurred for Wilke…
A: Journal entry: It is a book of original entry in which transactions are first to be recorded in the…
Q: May Fedor started a delivery service, Fed Deliveries, on July 1, 2015. The following transactions…
A: Assets=Liabilities+Equity
Q: 5. On September 1ª 2020 Mr. SAM started new repair service business. Listed below are the…
A: Three golden rules of accounting that are used in preparing journal entries are: Debit the receiver…
Q: Recording Transactions in a Financial Transaction Worksheet On Mar. 1, 2020, Froilan Labausa…
A: The corporation uses the financial worksheet by analyzing the effects of each transaction on its…
Q: Q3. On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following…
A: Journal entry is defined as recording of business transactions into the books of accounts of the…
Q: E1-7 Falske Computer Timeshare Company entered into the following transactions during May 2017. 1.…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: ABC Company, a proprietorship reported the following transactions for September, 2018. A) B) The…
A: Opening balance 23500
Q: Encik RAYQAL, the owner of BOMBASTIC SERVICES has started his taw firm on 4 Aprih 2016 and appointed…
A:
Q: B. Activity Analyzing Transaction - Basic Accounting Equation Jesus Goyal Computer Company entered…
A: Accounting equation of the business has three main elements. These elements are assets, liabilities…
Q: Required: 1.Prepare an Income Statement 2.Prepare a Balance Sheet
A: The income statement and the balance sheet are two of the major financial statements of any company.…
a. Journalize the above transactions
b. Post to ledger using the T-account format
c. Prepare the unadjusted
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
- A business has the following transactions: A. The business is started by receiving cash from an investor in exchange for common stock $10,000. B. Rent of $1,250 is paid for the first month. C. Office supplies are purchased for $375. D. Services worth $3,450 are performed. Cash is received for half. E. Customers pay $1,250 for services to be performed next month. F. $6,000 is paid for a one year insurance policy. G. We receive 25% of the money owed by customers in D. H. A customer has placed an order for $475 of services to be done this coming week. How much total revenue does the company have?The transactions completed by PS Music during June 2019 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the businesss operations: July 1.Peyton Smith made an additional investment in PS Music by depositing 5,000 in PS Musics checking account. 1.Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, 1,750. 1.Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2.Received 1,000 cash from customers on account. 3.On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of 3,600. Any additional hours beyond 80 will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3.Paid 250 to creditors on account. 4.Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5.Purchased office equipment on account from Office Mart, 7,500. 8.Paid for a newspaper advertisement, 200. 11.Received 1,000 for serving as a disc jockey for a party. 13.Paid 700 to a local audio electronics store for rental of digital recording equipment. 14.Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: 16.Received 2,000 for serving as a disc jockey for a wedding reception. 18.Purchased supplies on account, 850. July 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22.Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23.Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 2019. 27.Paid electric bill, 915. 28.Paid wages of 1,200 to receptionist and part-time assistant. 29.Paid miscellaneous expenses, 540. 30.Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 2019. 31.Received 3,000 for serving as a disc jockey for a party. 31.Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists music during July. 31.Withdrew 1,250 cash from PS Music for personal use. PS Musics chart of accounts and the balance of accounts as of July 1, 2019 (all normal balances), are as follows: Instructions 1. Enter the July 1, 2019, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance as of July 31, 2019.The transactions completed by PS Music during June 2019 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the business's operations: July 1. Peyton Smith made an additional investment in PS Music by depositing 5,000 in PS Music's checking account. 1. Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music: store. Paid rent for July, 1,750. 1. Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2. Received 1,000 cash from customers on account. 3. On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for SO hours per month for a monthly fee of 3,600. Any additional hours beyond SO will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3. Paid 250 to creditors on account. 4. Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5. Purchased office equipment on account from Office Mart, 7,500. 8. Paid for a newspaper advertisement, 200. 11. Received 1,000 for serving as a disc jockey for a party. 13. Paid 700 to a local audio electronics store for rental of digital recording equipment. 11. Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: 16. Received 2,000 for serving as a disc jockey for a wedding reception. 18. Purchased supplies on account, 850. July 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22. Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23. Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 2019. 27. Paid electric bill, 915. 28. Paid wages of 1,200 to receptionist and part-time assistant. 29. Paid miscellaneous expenses, 540. 30. Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 2019. 31. Received 3,000 for serving as a disc jockey for a party. 31. Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists' music during July. 31. Withdrew l,250 cash from PS Music for personal use. PS Music's chart of accounts and the balance of accounts as of July 1, 2019 (all normal balances), are as follows: 11 Cash 3,920 12 Accounts receivable 1,000 14 Supplies 170 15 Prepaid insurance 17 Office Equipment 21 Accounts payable 250 23 Unearned Revenue 31 Peyton smith, Drawing 4,000 32 Fees Earned 500 41 Wages Expense 6,200 50 Office Rent Expense 400 51 Equipment Rent Expense 800 52 Utilities Expense 675 53 Supplies Expense 300 54 music Expense 1,590 55 Advertising Expense 500 56 Supplies Expense 180 59 Miscellaneous Expense 415 Instructions 1.Enter the July 1, 2019, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2.Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3.Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4.Prepare an unadjusted trial balance as of July 31, 2019.
- The transactions completed by PS Music during June 2018 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the businesss operations: July 1. Peyton Smith made an additional investment in PS Musk in exchange for common stock by depositing 5,000 in PS Music s checking account. 1. Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, 1,750. 1. Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2. Received 1,000 on account. 3. On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of 3,600. Any additional hours beyond 80 will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3. Paid 250 on account. 4. Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5. Purchased office equipment on account from Office Mart, 7,500. 8. Paid for a newspaper advertisement, 200. 11. Received 1,000 for serving as a disc jockey for a party. 13. Paid 700 to a local audio electronics store for rental of digital recording equipment. 14. Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on lage 2 of the two-column journal: 16. Received 2,000 for serving as a disc jockey for a wedding reception. 18. Purchased supplies on account, 850. 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22. Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23. Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 2018. 27. Paid electric bill, 915. 28. Paid wages of 1,200 to receptionist and part-time assistant. 29. Paid miscellaneous expenses, 540. 30. Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 2018. 31. Received 3,000 for serving as a disc jockey for a party. July 31. Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists music during July. 31. Paid dividends, 1,250. PS Musics chart of accounts and the balance of accounts as of July 1, 2018 (all normal balances), are as follows: 11 Cash 3,920 41 Fees Earned 6,200 12 Accounts Receivable 1,000 50 Wages Expense 400 14 Supplies 170 51 Office Rent Expense 800 15 Prepaid Insurance 52 Equipment Rent Expense 675 17 Office Equipment 53 Utilities Expense 300 21 Accounts Payable 250 54 Music Expense 1,590 23 Unearned Revenue 55 Advertising Expense 500 31 Common Stock 4,000 56 Supplies Expense 180 33 Dividends 500 59 Miscellaneous Expense 415 Instructions 1. Enter the July 1, 2018, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column, and place a check mark () in the Posting Reference column. {Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance as of July 31, 2018.Brief Exercise 2-30 Transaction Analysis Galle Inc. entered into the following transactions during January. Borrowed $50,000 from First Street Bank by signing a new payable. Purchased $25,000 of equipment for cash. (Continued) Paid $500 to landlord for rent for January. Performed services for customers on account, $10,000. Collected $31000 from customers for services performed in Transaction d. Paid salaries of $2,500 for the current month. Required: Show the effect of each transaction using the following model.A business has the following transactions: The business is started by receiving cash from an investor in exchange for common stock $20,000 The business purchases supplies on account $500 The business purchases furniture on account $2,000 The business renders services to various clients on account totaling $9,000 The business pays salaries $2,000 The business pays this months rent $3,000 The business pays for the supplies purchased on account. The business collects from one of its clients for services rendered earlier in the month $1,500. What is total income for the month?
- Using the income statement for Ousel Travel Service shown in Practice Exercise 1-4A, prepare a statement of owners equity for the year ended November 30, 2016. Shane Ousel, the owner, invested an additional 50,000 in the business during the year and withdrew cash of 30,000 for personal use. Shane Ousel, capital as of December 1, 2015, was 666,000.In March, T. Carter established Carter Delivery Service. The account headings are presented below. Transactions completed during the month of March follow. a. Carter deposited 25,000 in a bank account in the name of the business. b. Bought a used truck from Degroot Motors for 15,140, paying 5,140 in cash and placing the remainder on account. c. Bought equipment on account from Flemming Company, 3,450. d. Paid the rent for the month, 1,000, Ck. No. 3001. e. Sold services for cash for the first half of the month, 6,927. f. Bought supplies for cash, 301, Ck. No. 3002. g. Bought insurance for the truck for the year, 1,200, Ck. No. 3003. h. Received and paid the bill for utilities, 349, Ck. No. 3004. i. Received a bill for gas and oil for the truck, 218. j. Sold services on account, 3,603. k. Sold services for cash for the remainder of the month, 4,612. l. Paid wages to the employees, 3,958, Ck. Nos. 30053007. m. Carter withdrew cash for personal use, 1,250, Ck. No. 3008. Required 1. Record the transactions and the balance after each transaction 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.The transactions completed by PS Music during June 20Y5 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the businesss operations: July 1. Peyton Smith made an additional investment in PS Music in exchange for common stock by depositing 5,000 in PS Musics checking account. 1. Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, 1,750. 1. Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2. Received 1,000 on account. 3. On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of 3,600. Any additional hours beyond 80 will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3. Paid 250 on account. 4. Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5. Purchased office equipment on account from Office Mart, 7,500. 8. Paid for a newspaper advertisement, 200. 11. Received 1,000 for serving as a disc jockey for a party. 13. Paid 700 to a local audio electronics store for rental of digital recording equipment. 14. Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: 16. Received 2,000 for serving as a disc jockey for a wedding reception. 18. Purchased supplies on account, 850. 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22. Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23. Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 20Y5. 27. Paid electric bill, 915. 28. Paid wages of 1,200 to receptionist and part-time assistant. 29. Paid miscellaneous expenses, 540. 30. Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 20Y5. 31. Received 3,000 for serving as a disc jockey for a party. 31. Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists music during July. 31. Paid dividends, 1,250. PS Musics chart of accounts and the balance of accounts as of July 1, 20Y5 (all normal balances), are as follows: Instructions 1. Enter the July 1, 20Y5, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column, and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance as of July 31, 20Y5.
- Brief Exercise 2-2? Events and Transactions Several events are listed below. Paid $30,000 for land. Purchased office supplies for cash. Perfumed consulting services for a client with the amount to be collected in 30 days. Signed a contract to perform consulting services over the next 6 months. Required: For each of the events, identify which ones qualify for recognition in the financial statements. If an event does not qualify for recognition, explain why.In March, T. Carter established Carter Delivery Service. The account headings are presented below. Transactions completed during the month of March follow. a. Carter deposited 25,000 in a bank account in the name of the business. b. Bought a used truck from Degroot Motors for 15,140, paying 5,140 in cash and placing the remainder on account. c. Bought equipment on account from Flemming Company, 3,450. d. Paid the rent for the month, 1,000, Ck. No. 3001 (Rent Expense). e. Sold services for cash for the first half of the month, 6,927 (Service Income). f. Bought supplies for cash, 301, Ck. No. 3002. g. Bought insurance for the truck for the year, 1,200, Ck. No. 3003. h. Received and paid the bill for utilities, 349, Ck. No. 3004 (Utilities Expense). i. Received a bill for gas and oil for the truck, 218 (Gas and Oil Expense). j. Sold services on account, 3,603 (Service Income). k. Sold services for cash for the remainder of the month, 4,612 (Service Income). l. Paid wages to the employees, 3,958, Ck. Nos. 30053007 (Wages Expense). m. Carter withdrew cash for personal use, 1,250, Ck. No. 3008. Required 1. In the equation, write the owners name above the terms Capital and Drawing. 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses. 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.Financial statements Outlaw Realty, organized August 1. 20Y7, is owned and operated by Julie Baxter. How many errors can you find in the following financial statements for Outlaw Realty, prepared after its first month of operations? Assume that the cash balance on August 31, 20Y7, is $51,600 and that cash flows from operating activities is reported correctly.