name Michae ctions:
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 33P
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Question
C. only
![On March 1, 2020, Michael Kerrigan established a house arrangement business
under the name Michael Repairs. During this march there were the following
transactions:
Transactions
To open the business, he deposited $60,000 of his personal funds as an
date
March
1ro
investment.
He bought equipment for $7,000 on credit.
He bought office supplies for $1,000 in cash.
He received income from renting a property for $4,000 in cash.
He paid for basic services for $400.00.
He paid $900 of the equipment purchased on credit.
He received income from managing a building's rent for $7,000 in cash.
He provided a $2,000 repair advisory service to a client on credit.
30 He paid his secretary a salary for $5, 000.
He made a $200.00 withdrawal for his personal use.
He paid advertising expenses for $2,500.
3
7
10
12
20
22
30
31
A. Make journal entries.
B. Records the transfer to the ledger.
C. Prepare a test balance.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F15d10d69-1dbb-4eaf-8747-555f244f8c25%2F7f428bd3-bded-4333-b912-744653ed87be%2F1oyrbf_processed.png&w=3840&q=75)
Transcribed Image Text:On March 1, 2020, Michael Kerrigan established a house arrangement business
under the name Michael Repairs. During this march there were the following
transactions:
Transactions
To open the business, he deposited $60,000 of his personal funds as an
date
March
1ro
investment.
He bought equipment for $7,000 on credit.
He bought office supplies for $1,000 in cash.
He received income from renting a property for $4,000 in cash.
He paid for basic services for $400.00.
He paid $900 of the equipment purchased on credit.
He received income from managing a building's rent for $7,000 in cash.
He provided a $2,000 repair advisory service to a client on credit.
30 He paid his secretary a salary for $5, 000.
He made a $200.00 withdrawal for his personal use.
He paid advertising expenses for $2,500.
3
7
10
12
20
22
30
31
A. Make journal entries.
B. Records the transfer to the ledger.
C. Prepare a test balance.
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