Concept explainers
1.
To Prepare: T-accounts for the accounts on the
1.
Explanation of Solution
T-account:
T-account refers to an individual account, where the increases or decreases in the value of specific asset, liability,
This account is referred to as the T-account, because the alignment of the components of the account resembles the capital letter ‘T’.’ An account consists of the three main components which are as follows:
(a)The title of the account
(b)The left or debit side
(c)The right or credit side
Prepare the T-account:
2.
To record:
2.
Explanation of Solution
Journal entries for the transactions (1) to (10) as follows:
Date | Account Title and Explanation | Debit ($) | Credit ($) | ||
1) | Cash (+A) | 21 | |||
Notes payable (Short-term) (+L) | 21 | ||||
(To record borrowed cash on note) | |||||
2) | Equipment (+A) | 18 | |||
Cash (-A) | 18 | ||||
(To record purchase of equipment) | |||||
3) | Cash (+A) | 5 | |||
Common Stock (+SE) | 5 | ||||
(To record issued common stock for cash) | |||||
4) | Equipment (+A) | 3 | |||
Cash (-A) | 3 | ||||
(To record Purchase of additional equipment) | |||||
5) | Supplies (+A) | 10 | |||
Accounts payable (+L) | 10 | ||||
(To record supplies purchased for future use) | |||||
6) | Cash (+A) | 56 | |||
9 | |||||
Service Revenue (+R, +SE) | 65 | ||||
(To record service revenue earned during the year 2015) | |||||
7) | Salaries and Wages Expense (+E, -SE) | 35 | |||
Cash (-A) | 35 | ||||
(To record salaries and wages expense incurred during 2015) | |||||
8) | Cash (+A) | 8 | |||
Accounts Receivable (-A) | 8 | ||||
(To record cash collected on customer’s account) | |||||
9) | Accounts payable (-L) | 11 | |||
Cash (-A) | 11 | ||||
(To record cash paid to creditors) | |||||
10) | Cash (+A) | 3 | |||
Unearned Revenue (+L) | 3 | ||||
(To record receiving of customers deposit before doing work) |
Table (1)
3.
To Prepare: An unadjusted trial balance from requirement 2.
3.
Explanation of Solution
Incorporation L&S | ||
Unadjusted Trial Balance | ||
At December 31, 2015 | ||
(in thousands) | ||
Account Titles | Debit ($) | Credit ($) |
Cash | 31 | |
Accounts Receivable | 5 | |
Supplies | 12 | |
Equipment | 27 | |
0 | ||
Software | 12 | |
Accumulated Amortization | 3 | |
Accounts Payable | 6 | |
Notes Payable (short–term) | 21 | |
Salaries and Wages Payable | 0 | |
Interest Payable | 0 | |
Income Tax Payable | 0 | |
Unearned revenue | 3 | |
Common Stock | 20 | |
4 | ||
Service Revenue | 65 | |
Supplies Expense | 0 | |
Salaries and Wages Expense | 35 | |
Depreciation Expense | 0 | |
Amortization Expense | 0 | |
Interest Expense | 0 | |
Income Tax Expense | 0 | |
Total | 122 | 122 |
Table (2)
4.
To record: Adjusting journal entries (11) to (16)
4.
Explanation of Solution
Prepare adjusting journal entries (11) to (16):
Date | Account Title and Explanation | Debit ($) | Credit ($) | ||
11. | Amortization Expense (+E, -SE) | 3 | |||
Accumulated Amortization (+xA, -A) | 3 | ||||
(To record |
|||||
12. | Supplies expense (+E, -SE) (1) | 8 | |||
Supplies(-A) | 8 | ||||
(To record the use of supplies) | |||||
13. | 2 | ||||
Accumulated depreciation –Equipment (+xA, -A) | 2 | ||||
(To record adjusting entry for depreciation expense) | |||||
14. | Interest expense (+E, -SE) | 1 | |||
Interest payable(+L) | 1 | ||||
(To record the adjusting entry for interest expense) | |||||
15. | Salaries and wages expense (+E, -SE) | 3 | |||
Salaries and wages payable (+L) | 3 | ||||
(To record the adjusting entry for salaries and wages expenses) | |||||
16. | Income tax expense(+E, -SE) | 4 | |||
Income tax payable(+L) | 4 | ||||
(To record the adjusting entry for income tax expense) |
Table (3)
Working notes:
12. Calculation of supplies expenses:
5.
To Prepare: An adjusted trial balance from requirement 4.
5.
Explanation of Solution
Prepare an adjusted trial balance for Incorporation L&S for December 31, 2015:
Incorporation L&S | ||
Adjusted Trial Balance | ||
At December 31, 2015 | ||
(in thousands) | ||
Account Titles | Debit ($) | Credit ($) |
Cash | 31 | |
Accounts Receivable | 5 | |
Supplies | 4 | |
Equipment | 27 | |
Accumulated Depreciation–Equipment | 2 | |
Software | 12 | |
Accumulated Amortization | 6 | |
Accounts Payable | 6 | |
Notes Payable (short–term) | 21 | |
Salaries and Wages Payable | 3 | |
Interest Payable | 1 | |
Income Tax Payable | 4 | |
Unearned revenue | 3 | |
Common Stock | 20 | |
Retained Earnings | 4 | |
Service Revenue | 65 | |
Supplies Expense | 8 | |
Salaries and Wages Expense | 38 | |
Depreciation Expense | 2 | |
Amortization Expense | 3 | |
Interest Expense | 1 | |
Income Tax Expense | 4 | |
Total | 135 | 135 |
Table (4)
6.
To prepare: An income statement, Statement of retained earnings and balance sheet.
6.
Explanation of Solution
Prepare an income statement for the year ended December 31, 2015:
Incorporation L&S | ||
Income Statement | ||
For the year ended December 31, 2015 | ||
(in thousands) | ||
Particulars | Amount ($) | Amount ($) |
Revenues: | ||
Service revenue | 65 | |
Total revenues | 65 | |
Less: Expenses | ||
Salaries and wage expense | 38 | |
Supplies expense | 8 | |
Amortization expense | 3 | |
Depreciation expense | 2 | |
Interest expense | 1 | |
Income tax expense | 4 | |
Total expenses | 56 | |
Net income | 9 |
(2)
Table (5)
Prepare a statement of retained earnings:
Incorporation L&S | ||
Statement of Retained Earnings | ||
For the year ended December 31, 2015 | ||
(in thousands) | ||
Particulars | Amount ($) | Amount ($) |
Balance, January 1, 2015 | 4 | |
Add: Net income | 9 | |
13 | ||
Less: Dividends | (0) | |
Balance, December 31, 2015 | 13 |
Table (6)
Prepare a balance sheet for the year December 31, 2015:
Incorporation L&S | ||
Balance Sheet | ||
At December 31, 2015 | ||
(in thousands) | ||
Particulars | Amount($) | Amount($) |
Assets | ||
Current Assets: | ||
Cash | 31 | |
Accounts Receivable | 5 | |
Supplies | 4 | |
Total current assets | 40 | |
Equipment | 27 | |
Accumulated Depreciation | (2) | |
Equipment, net | 25 | |
Software | 12 | |
Accumulated amortization | (6) | 6 |
Total Assets | 71 |
Liabilities : | ||
Current liabilities : | ||
Accounts Payable | 6 | |
Notes payable (short-term) | 21 | |
salaries and wages payable | 3 | |
Interest payable | 1 | |
Income Taxes Payable | 4 | |
Unearned revenue | 3 | |
Total Current Liabilities | 38 | |
Stockholders’ Equity | ||
Common Stock | 20 | |
Retained Earnings | 13 | |
Total Stockholders’ Equity | 33 | |
Total liabilities and stockholders’ equity | 71 |
Table (7)
7.
To prepare: The closing entry for Incorporation L&S on December 31, 2015.
7.
Explanation of Solution
Prepare closing entries for Incorporation L&S on December 31, 2015:
Date | Account Title and Explanation | Debit ($) | Credit ($) |
December 31, 2015 | Sales revenue(-R) | 65 | |
Salaries and wages expense(-E) | 38 | ||
Depreciation expense(-E) | 2 | ||
Supplies expense(-E) | 8 | ||
Amortization expense (-E) | 3 | ||
Income tax expense(-E) | 4 | ||
Interest expense (-E) | 1 | ||
Retained earnings(+SE) (2) | 9 | ||
(To record the closing entries for Incorporation L&S) |
Table (8)
For closing of temporary accounts, the balances of revenues, expenses, and dividend accounts will be transferred to retained earnings in order to bring zero balance for expenses and revenues accounts.
8.
To prepare: Post closing trial balance from the requirement 7.
8.
Explanation of Solution
Prepare a Post-closing trial balance for Incorporation L&S for December 31, 2015:
Incorporation L&S | ||
Post-closing Trial Balance | ||
At December 31, 2015 | ||
(in thousands) | ||
Account Titles | Debit ($) | Credit ($) |
Cash | 31 | |
Accounts Receivable | 5 | |
Supplies | 4 | |
Equipment | 27 | |
Accumulated Depreciation–Equipment | 2 | |
Software | 12 | |
Accumulated Amortization | 6 | |
Accounts Payable | 6 | |
Notes Payable (short–term) | 21 | |
Salaries and Wages Payable | 3 | |
Interest Payable | 1 | |
Income Taxes Payable | 4 | |
Unearned revenue | 3 | |
Common Stock | 20 | |
Retained Earnings | 13 | |
Service Revenue | 0 | |
Salaries and Wages Expense | 0 | |
Supplies Expense | 0 | |
Depreciation Expense | 0 | |
Amortization expense | 0 | |
Interest Expense | 0 | |
Income Tax Expense | 0 | |
Total | 79 | 79 |
Table (9)
9.
To know: The net income of Incorporation L&S has been generated during 2015 and to explain the company has been financed primarily by liabilities or stockholders’ equity.
9.
Explanation of Solution
The net income of Incorporation L&S for 2015:
Incorporation L&S generated net income in the year 2015 is $9(thousand).
To see whether the Incorporation L&S is financed primarily by liabilities or stockholders’ equity:
The Incorporation L&S is financed primarily by liabilities, where by liabilities provide for $38(thousand) with the total assets and stockholders’ equity provide for $33(thousand).
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Chapter 4 Solutions
FUNDAMENTALS OF FINANCIAL ACCOUNTING
- In October, A. Nguyen established an apartment rental service. The account headings are presented below. Transactions completed during the month of October follow. a. Nguyen deposited 25,000 in a bank account in the name of the business. b. Paid the rent for the month, 1,200, Ck. No. 2015 (Rent Expense). c. Bought supplies on account, 225. d. Bought a truck for 18,000, paying 1,000 in cash and placing the remainder on account. e. Bought insurance for the truck for the year, 1,400, Ck. No. 2016. f. Sold services on account, 5,000 (Service Income). g. Bought office equipment on account from Henry Office Supply, 2,300. h. Sold services for cash for the first half of the month, 6,050 (Service Income). i. Received and paid the bill for utilities, 150, Ck. No. 2017 (Utilities Expense). j. Received a bill for gas and oil for the truck, 80 (Gas and Oil Expense). k. Paid wages to the employees, 1,400, Ck. Nos. 20182020 (Wages Expense). l. Sold services for cash for the remainder of the month, 4,200 (Service Income). m. Nguyen withdrew cash for personal use, 2,000, Ck. No. 2021. 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.arrow_forwardIn October, A. Nguyen established an apartment rental service. The account headings are presented below. Transactions completed during the month of October follow. a. Nguyen deposited 25,000 in a bank account in the name of the business. b. Paid the rent for the month, 1,200, Ck. No. 2015. c. Bought supplies on account, 225. d. Bought a truck for 18,000, paying 1,000 in cash and placing the remainder on account e. Bought Insurance for the truck for the yean 1,400, Ck. No. 2016. f. Sold services on account 5,000. g. Bought office equipment on account from Henry Office Supply, 2,300. h. Sold services for cash for the first half of the month, 6,050. i. Received and paid the bill for utilities, 150, Ck. No. 2017. j. Received a bill for gas and oil for the truck. 80. k. Paid wages to the employees, 1,400, Ck Nos. 20182020. l. Sold services for cash for the remainder of the month, 4,200. m. Nguyen withdrew cash for personal use, 2,000, Ck. No. 2021. 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, reanalyze each transaction.arrow_forwardJournal entries and trial balance On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month: a. Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, 17,500. b. Purchased supplies on account, 2,300. c. Earned sales commissions, receiving cash, 13,300. d. Paid rent on office and equipment for the month, 3,000. e. Paid creditor on account, 1,150. f. Paid dividends, 1,800. g. Paid automobile expenses (including rental charge) for month, 1,500, and miscellaneous expenses, 400. h. Paid office salaries, 2,800. i. Determined that the cost of supplies used was 1,050. Instructions 1. Journalize entries for transactions (a) through (i), using the following account titles: Cash, Supplies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. Journal entry explanations may be omitted. 2. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance. 3. Prepare an unadjusted trial balance as of August 31, 20Y7. 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for August. 5. Determine the increase or decrease in retained earnings for August.arrow_forward
- 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.arrow_forwardElite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2016, follows: The following business transactions were completed by Elite Realty during April 2016: Instructions 1. Record the April 1, 2016, balance of each account in the appropriate balance column of a four-column account, write Balance in the item section, and place a check mark () in the Posting Reference column. 2. Journalize the transactions for April in a two-column journal beginning on Page 18. Journal entry explanations may be omitted. 3. Post to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance of the ledger as of April 30, 2016. 5. Assume that the April 30 transaction for salaries and commissions should have been 19,100. (a) Why did the unadjusted trial balance in (4) balance? (b) Journalize the correcting entry. (c) Is this error a transposition or slide?arrow_forwardOn March 1 of this year, B. Gervais established Gervais Catering Service. The account headings are presented below. Transactions completed during the month follow. a. Gervais deposited 25,000 in a bank account in the name of the business. b. Bought a truck from Kelly Motors for 26,329, paying 8,000 in cash and placing the balance on account, Ck. No. 500. c. Bought catering equipment on account from Luigis Equipment, 3,795. d. Paid the rent for the month, 1,255, Ck. No. 501 (Rent Expense). e. Bought insurance for the truck for one year, 400, Ck. No. 502. f. Sold catering services for cash for the first half of the month, 3,012 (Catering Income). g. Bought supplies for cash, 185, Ck. No. 503. h. Sold catering services on account, 4,307 (Catering Income). i. Received and paid the heating bill, 248, Ck. No. 504 (Utilities Expense). j. Received a bill from GC Gas and Lube for gas and oil for the truck, 128 (Gas and Oil Expense). k. Sold catering services for cash for the remainder of the month, 2,649 (Catering Income). l. Gervais withdrew cash for personal use, 1,550, Ck. No. 505. m. Paid the salary of the assistant, 1,150, Ck. No. 506 (Salary Expense). 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.arrow_forward
- Eddie Edwards and Phil Bell own and operate The Second Hand Equipment Shop. The following transactions involving notes and interest were completed during the last three months or 20--: REQUIRED 1. Prepare general journal entries for the transactions. 2. Prepare necessary adjusting entries for the notes outstanding on December 31.arrow_forwardKelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following transactions: Instructions 1. The chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 2016, is shown in Exhibit 17. For each account in the post-closing trial balance, enter the balance in the appropriate Balance column of a four-column account. Date the balances May 1, 2016, and place a check mark () in the Posting Reference column. Journalize each of the May transactions in a two column journal starting on Page 5 of the journal and using Kelly Consultings chart of accounts. (Do not insert the account numbers in the journal at this time.) 2. Post the journal to a ledger of four-column accounts. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6) a. Insurance expired during May is 275. b. Supplies on hand on May 31 are 715. c. Depreciation of office equipment for May is 330. d. Accrued receptionist salary on May 31 is 325. e. Rent expired during May is 1,600. f. Unearned fees on May 31 are 3,210. 5.(Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. 6.Journalize and post the adjusting entries. Record the adjusting entries on Page 7 of the journal. 7.Prepare an adjusted trial balance. 8.Prepare an income statement, a statement of owners equity, and a balance sheet. 9.Prepare and post the closing entries. Record the closing entries on Page 8 of the journal. (Income Summary is account #33 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10.Prepare a post-closing trial balance.arrow_forwardJournal entries and trial balance On October 1, 20Y6, Jay Crowley established Affordable Realty, which completed the following transactions during the month: a. Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, 40,000. b. Paid rent on office and equipment for the month, 4,800. c. Purchased supplies on account, 2,150. d. Paid creditor on account, 1,100. e. Earned sales commissions, receiving cash, 18,750. f. Paid automobile expenses (including rental charge) for month, 1,580, and miscellaneous expenses, 800. g. Paid office salaries, 3,500. h. Determined that the cost of supplies used was 1,300. i. Paid dividends, 1,500. Instructions 1. Journalize entries for transactions (a) through (i), using the following account titles: Cash, Supplies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. Explanations may be omitted. 2. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances after all posting is complete. Accounts containing only a single entry do not need a balance. 3. Prepare an unadjusted trial balance as of October 31, 20Y6. 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for October. 5. Determine the increase or decrease in retained earnings for October.arrow_forward
- In April, J. Rodriguez established an apartment rental service. The account headings are presented below. Transactions completed during the month of April follow. a. Rodriguez deposited 70,000 in a bank account in the name of the business. b. Paid the rent for the month, 2,000, Ck. No. 101 (Rent Expense). c. Bought supplies on account, 150. d. Bought a truck for 23,500, paying 2,500 in cash and placing the remainder on account. e. Bought insurance for the truck for the year, 2,400, Ck. No. 102. f. Sold services on account, 4,700 (Service Income). g. Bought office equipment on account from Stern Office Supply, 1,250. h. Sold services for cash for the first half of the month, 8,250 (Service Income). i. Received and paid the bill for utilities, 280, Ck. No. 103 (Utilities Expense). j. Received a bill for gas and oil for the truck, 130 (Gas and Oil Expense). k. Paid wages to the employees, 2,680, Ck. Nos. 104106 (Wages Expense). l. Sold services for cash for the remainder of the month, 3,500 (Service Income). m. Rodriguez withdrew cash for personal use, 4,000, Ck. No. 107. 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.arrow_forwardEFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS) Jon Wallace started a business. During the first month (March 20--), the following transactions occurred. Show the effect of each transaction on the accounting equation: Assets= Liabilities + Owners Equity. After each transaction, show the new account totals. (a) Invested cash in the business, 30,000. (b) Bought office equipment on account, 4,500. (c) Bought office equipment for cash, 1,600. (d) Paid cash on account to supplier in transaction (b), 2,000. EFFECTS OF TRANSACTIONS (REVENUE, EXPENSE, WITHDRAWALS) This exercise is an extension of Exercise 2-3B. Lets assume Jon Wallace completed the following additional transactions during March. Show the effect of each transaction on the basic elements of the expanded accounting equation: Assets = Liabilities + Owners Equity (Capital Drawing + Revenues Expenses). After transaction (k), report the totals for each element. Demonstrate that the accounting equation has remained in balance. (e) Performed services and received cash, 3,000. (f) Paid rent for March, 1,000. (g) Paid March phone bill, 68. (h) Jon Wallace withdrew cash for personal use, 800. (i) Performed services for clients on account, 900. (j) Paid wages to part-time employee, 500. (k) Received cash for services performed on account in transaction (i), 500.arrow_forwardIn April, J. Rodriguez established an apartment rental service. The account headings are presented below. Transactions completed during the month of April follow. a. Rodriguez deposited 70,000 in a bank account in the name of the business. b. Paid the rent for the month, 2,000, Ck. No. 101 (Rent Expense). c. Bought supplies on account, 150. d. Bought a truck for 23,500, paying 2,500 in cash and placing the remainder on account. e. Bought insurance for the truck for the year, 2,400, Ck. No. 102. f. Sold services on account, 4,700. g. Bought office equipment on account from Stern Office Supply, 1,250. h. Sold services for cash for the first half of the month, 8,250. i. Received and paid the bill for utilities, 280, Ck. No. 103. j. Received a bill for gas and oil for the truck, 130. k. Paid wages to the employees, 2,680, Ck. Nos. 104106. l. Sold services for cash for the remainder of the month, 3,500. m. Rodriguez withdrew cash for personal use, 4,000, Ck. No. 107. 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.arrow_forward
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