(a)
T-Accounts:
T-accounts are referred as T-account because its format represents the letter “T”. The T-accounts consists of the following:
- The title of accounts.
- The debit side (Dr) and,
- The credit side (Cr).
To Enter: The beginning balances of November in the ledger accounts.
(a)
Explanation of Solution
Enter the beginning balances of November in the ledger accounts as follows:
Cash | |||
Nov. 1 | $ 2,790 | ||
Bal. | $ 2,790 |
Table (1)
Supplies | |||
Nov. 1 | $ 1,120 | ||
Bal. | $ 1,120 |
Table (2)
Equipment | |||
Nov. 1 | $ 10,000 | ||
Bal. | $ 10,000 |
Table (3)
Accounts Payable | |||
Nov. 1 | $ 2,300 | ||
Bal. | $ 2,300 |
Table (4)
Accounts Receivable | |||
Nov. 1 | $ 2,910 | ||
Bal. | $ 2,910 |
Table (5)
Unearned Service Revenue | |||
Nov. 1 | $ 400 | ||
Bal. | $ 400 |
Table (6)
Common Stock | |||
Nov. 1 | $10,000 | ||
Bal. | $10,000 |
Table (7)
| |||
Nov. 1 | $ 3,000 | ||
Bal. | $ 3,000 |
Table (8)
| |||
Nov. 1 | $ 500 | ||
Bal. | $ 500 |
Table (9)
Salaries and Wages Payable | |||
Nov. 1 | $ 620 | ||
Bal. | $ 620 |
Table (10)
(b)
Journal:
Journal is the book of original entry. Journal consists of the day-to-day financial transactions in a chronological order. The journal has two aspects; they are debit aspect and the credit aspect.
To Journalize: The transaction of Company S for the month of November.
(b)
Explanation of Solution
Journalize the transaction of Company S for the month of November.
Date | Account Title and Description | Debit ($) | Credit ($) |
November 8 | Salaries and Wages Payable | 620 | |
Salaries and Wages Expense | 600 | ||
Cash | 1,220 | ||
(To record the payment made for salaries and wages of employees) | |||
November 10 | Cash | 1,800 | |
Accounts Receivable | 1,800 | ||
(To record the cash received in payment of account) | |||
November 12 | Cash | 3,700 | |
Service Revenue | 3,700 | ||
(To record the cash received for the service performed) | |||
November 15 | Equipment | 3,600 | |
Accounts Payable | 3,600 | ||
(To record the purchase of equipment on account) | |||
November 17 | Supplies | 1,300 | |
Accounts Payable | 1,300 | ||
(To record the purchase of supplies on account) | |||
November 20 | Accounts Payable | 2,500 | |
Cash | 2,500 | ||
(To record the payment of cash to creditors) | |||
November 22 | Rent Expenses | 480 | |
Cash | 480 | ||
(To record the payment of rent for the month of November) | |||
November 25 | Salaries Expenses | 1,000 | |
Cash | 1,000 | ||
(To record the salaries paid to the employees) | |||
November 27 | Accounts receivable | 900 | |
Service Revenue | 900 | ||
(To record the services performed on account) | |||
November 29 | Cash | 750 | |
Unearned Service revenue | 750 | ||
(To record the cash received for the service yet to provide) |
Table (11)
(c)
To
(c)
Explanation of Solution
Cash | |||
Nov. 1 | $ 2,790 | Nov. 8 | $ 1,220 |
10 | $ 1,800 | 20 | $ 2,500 |
12 | $ 3,700 | 22 | $ 480 |
29 | $ 750 | 25 | $ 1,000 |
Total | $ 9,040 | Total | $ 5,200 |
Bal. | $ 3,840 |
Table (12)
Accounts receivable | |||
Nov. 1 | $ 2,910 | Nov. 10 | $ 1,800 |
27 | $ 900 | ||
$ 3,810 | $ 1,800 | ||
Bal. | $ 2,010 |
Table (13)
Supplies | |||
Nov. 1 | $ 1,120 | ||
17 | $ 1,300 | ||
Bal. | $ 2,420 |
Table (14)
Equipment | |||
Nov. 1 | $ 10,000 | ||
15 | $ 3,600 | ||
Bal. | $ 13,600 |
Table (15)
Accumulated | |||
Nov. 1 | $ 500 | ||
Bal. | $ 500 |
Table (16)
Accounts Payable | |||
Nov. 20 | $ 2,500 | Nov. 1 | $ 2,300 |
15 | $ 3,600 | ||
17 | $ 1,300 | ||
Total | $2,500 | Total | $ 7,200 |
Bal. | $ 4,700 |
Table (17)
Unearned Service Revenue | |||
Nov. 1 | $ 400 | ||
29 | $ 750 | ||
Bal. | $ 1,150 |
Table (18)
Salaries and Wages Payable | |||
Nov. 8 | $ 620 | Nov. 1 | $ 620 |
Bal. | $ 0 |
Table (19)
Common Stock | |||
Nov. 1 | $10,000 | ||
Bal. | $10,000 |
Table (20)
Retained Earnings | |||
Nov. 1 | $ 3,000 | ||
Bal. | $ 3,000 |
Table (21)
Service Revenue | |||
Nov. 22 | $ 3,700 | ||
27 | $ 900 | ||
Bal. | $ 4,600 |
Table (22)
Salaries and Wages Expenses | |||
Nov. 8 | $ 600 | ||
25 | $ 1,000 | ||
Bal. | $ 1,600 |
Table (23)
Rent Expense | |||
Nov. 22 | $ 480 | ||
Bal. | $ 480 |
Table (24)
(d)
A trial balance is the summary of all the ledger accounts. The trial balance is prepared to check the total balance of the debit column with the total of the balance of the credit column, which must be equal. The trial balance is usually prepared to check accuracy of ledger balances, and before the preparation of financial statements.
To prepare: The trial balance of Company S at November, 30.
(d)
Explanation of Solution
Prepare a trial balance of Company S for the month ended November, 30 as follows:
Company S Trial Balance November 30, 2017 | ||
Particulars | Debit $ | Credit $ |
Cash | 3,840 | |
Accounts receivable | 2,010 | |
Supplies | 2,420 | |
Equipment | 13,600 | |
Accumulated depreciation- Equipment | 500 | |
Accounts payable | 4,700 | |
Salaries and wages payable | 0 | |
Unearned service revenue | 1,150 | |
Common stock | 10,000 | |
Service revenue | 4,600 | |
Retained earnings | 3,000 | |
Salaries and wages expense | 1,600 | |
Rent expenses | 480 | |
Total | 23,950 | 23,950 |
Table (25)
(e)
An adjusting entry is prepared when the trial balance is not up-to-date, and complete, and they are usually prepared at the end of the accounting period. This adjusting entry is essential for preparing the financial statements of the business
To Journalize: Theadjusting entries of Company S for November 30, posting the adjusting entries to the ledger accounts.
(e)
Explanation of Solution
The adjusting entries of Company S for November 30, 2017 are as follows:
(1)
Date | Accounts title and Description |
Debit ($) |
Credit ($) |
November 30 | Supplies expense (1) | 1,320 | |
Supplies | 1,320 | ||
(To record the supplies expenses) |
Working notes:
Description:
- Supplies expense is an expense account. There is an increase in the expenses, and hence it is debited. (Increase in Supplies expense decreases
stockholders’ equity account). Supply is an asset account. There is a decrease in asset, and hence, it is credited.
(2)
Date | Account Titles and Description | Debit ($) | Credit ($) |
November 30 | Salaries and wages expense | 480 | |
Salaries and wages payable | 480 | ||
(To record the accrued salaries payable) |
Description:
- Salaries and wages expense is an expense account. There is an increase in the salaries and wages expenses, and hence it is debited. (Increase in salaries and wages expense decreases stockholders’ equity account). Salaries and wages payable is a liability account. There is an increase in liability, and hence, it is credited.
(3)
Date | Account Titles and Description | Debit ($) | Credit ($) |
November 30 | Depreciation expense | 250 | |
Accumulated depreciation –Equipment | 250 | ||
(To record the depreciation and the accumulated depreciation) |
Description:
- Depreciation expense is an expense account. There is an increase in the expenses, and hence it is debited. Accumulated Depreciation is a contra-asset account. There is a decrease in assets, and hence, it is credited.
(4)
Date | Account Titles and Description | Debit ($) | Credit ($) |
November 30 | Unearned service revenue | 500 | |
Service revenue | 500 | ||
(To record the service performed for the cash earned) |
Description:
- Unearned service revenue is a liability account. There is a decrease in the liability, and hence it is debited. Service revenue is a component of stockholder’s equity account. There is an increase in service revenue, and hence, it is credited.
- Post the adjusting entries to the respective ledger accounts as follows:
Supplies | |||
Nov. 30 | $ 2,420 | 30 | $ 1,320 |
Bal. | $ 1,100 |
Table (26)
Supplies Expense | |||
Nov. 30 | $ 1,320 | ||
Bal. | $ 1,320 |
Table (27)
Salaries and Wages Expenses | |||
Nov. 30 | $ 1,600 | ||
30 | $ 480 | ||
Bal. | $ 2,080 |
Table (28)
Salaries and Wages Payable | |||
Nov. 30 | $ 0 | ||
30 | $ 480 | ||
Bal. | $ 480 |
Table (29)
Accumulated Depreciation – Equipment | |||
Nov. 30 | $ 500 | ||
30 | $ 250 | ||
Bal. | $ 750 |
Table (30)
Depreciation Expense | |||
Nov. 30 | $ 250 | ||
Bal. | $ 250 |
Table (31)
Service Revenue | |||
Nov. 30 | $ 4,600 | ||
30 | $ 500 | ||
Bal. | $ 5,100 |
Table (32)
Unearned Service Revenue | |||
$ 500 | Nov. 30 | $ 1,150 | |
Bal. | $ 650 |
Table (33)
(f)
Adjusted trial balance:
The unadjusted trial balance is the summary of all the ledger accounts that appears on the ledger accounts before making adjusting journal entries.
To prepare: An adjusted trial balance of Company S at November 30.
(f)
Explanation of Solution
Prepare an adjusted trial balance of Company S for the month ended November 30 as follows:
Company S Adjusted Trial Balance November 30, 2017 | ||
Particulars | Debit $ | Credit $ |
Cash | 3,840 | |
Accounts receivable | 2,010 | |
Supplies | 1,100 | |
Equipment | 13,600 | |
Accumulated depreciation- Equipment | 750 | |
Accounts payable | 4,700 | |
Salaries and wages payable | 480 | |
Unearned service revenue | 650 | |
Common stock | 10,000 | |
Service revenue | 5,100 | |
Retained earnings | 3,000 | |
Depreciation expenses | 250 | |
Salaries and wages expense | 2,080 | |
Supplies expenses | 1,320 | |
Rent expenses | 480 | |
Total | 24,680 | 24,680 |
Table (34)
(g)
Income statement:
An income statement is one of the financial statements which shows the revenues, and expenses of the company. The income statement is prepared to ascertain the net income/loss of the company, by deducting the expenses from the revenues.
Statement of retained earnings:
This is an equity statement which shows the changes in the stockholders’ equity over a period of time.
Classified balance sheet:
This is the financial statement of a company which shows the grouping of similar assets and liabilities under subheadings.
To Prepare: The income statement for the month of November, the retained earnings statement for the month of November, a classified balance sheet of Company S for the month ended November 30, 2017.
(g)
Explanation of Solution
The income statement of Company S for the month of November, 30 2017 is computed in the table below:
S Company | ||
Income Statement | ||
As on November 30, 2017 | ||
Particulars | $ | $ |
Revenue: | ||
Service Revenue | 5,100 | |
Less: Expenses | ||
Salaries Expenses | 2,080 | |
Supplies Expenses | 1,320 | |
Rent Expenses | 480 | |
Depreciation Expenses | 250 | |
Total Expenses | 4,130 | |
Net income | 970 |
Table (35)
The retained earnings statement of Company S for the month of November, 2017 is computed in the table below:
S Company | ||
Retained earnings statement | ||
For the month ended November 30, 2017 | ||
Particulars | $ | |
Retained earnings at November, 1 | 3,000 | |
Add: Net income | 970 | |
Retained earnings at November, 30 | 3,970 |
Table (36)
The classified balance sheet of Company S as on November 30, 2017 is prepared in the table below:
S Company | ||
Classified Balance sheet Statement | ||
As at November 30, 2017 | ||
Assets | $ | $ |
Current assets: | ||
Cash | 3,840 | |
Accounts receivable | 2,010 | |
Supplies | 1,100 | |
Total of current assets | 6,950 | |
Other assets: | ||
Equipment | 13,600 | |
Less: Accumulated depreciation -Equipment | 750 | |
Total of other assets | 12,850 | |
Total assets | $19,800 | |
Liabilities and Stockholders' equity | $ | $ |
Liabilities: | ||
Accounts payable | 4,700 | |
Unearned service revenue | 650 | |
Salaries and wages payable | 480 | |
Total liabilities | 5,830 | |
Stockholders' equity: | ||
Common stock | 10,000 | |
Retained earnings | 3,970 | |
Total stockholders' equity | 13,970 | |
Total liabilities and stockholders' equity | 19,800 |
Table (37)
The retained earnings for the month of November, 2017 are $3,970.
The classified balance sheet for the month ended November, 30 2017 are agreed, both the assets account and the liabilities account shows a balance of $19,800
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Chapter 4 Solutions
Financial Accounting: Tools for Business Decision Making, 8th Edition
- 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.arrow_forwardIn 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_forwardPrepare journal entries to record the following transactions that occurred in March: A. on first day of the month, purchased building for cash, $75,000 B. on fourth day of month, purchased inventory, on account, $6,875 C. on eleventh day of month, billed customer for services provided, $8,390 D. on nineteenth day of month, paid current month utility bill, $2,000 E. on last day of month, paid suppliers for previous purchases, $2,850arrow_forward
- 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. 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_forwardReece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. Reece Financial Services Co.s accounting clerk prepared the following unadjusted trial balance at July 31, 2016: The data needed to determine year-end adjustments are as follows: a. Depreciation of building for the year, 6,400. b. Depreciation of equipment for the year, 2,800. c. Accrued salaries and wages at July 31, 900. d. Unexpired insurance at July 31, 1,500. e. Fees earned but unbilled on July 31, 10,200. f. Supplies on hand at July 31, 615. g. Rent unearned at July 31, 300. Instructions 1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation ExpenseBuilding; Depreciation ExpenseEquipment; and Supplies Expense. 2. Determine the balances of the accounts affected by the adjusting entries and preparean adjusted trial balance.arrow_forwardReview the following transactions and prepare any necessary journal entries. A. On January 5, Bunnet Co. purchases 350 aprons (Supplies) at $25 per apron from a supplier, on credit. Terms of the purchase are 3/10, n/30 from the invoice date of January 5. B. On February 18, Melon Construction receives advance cash payment from a client for construction services in the amount of $20,000. Melon had yet to provide construction services as of February 18. C. On March 21, Noonan Smoothies sells 875 smoothies for $4 cash per smoothie. The sales tax rate is 6.5%. D. On June 7, Organic Methods paid a portion of their noncurrent note in the amount of $9,340 cash.arrow_forward
- The trial balance of Jillson Company as of December 31, the end of its current fiscal year, is as follows: Here are the data for the adjustments. ab. Merchandise Inventory at December 31, 54,845.00. c. Store supplies inventory (on hand), 488.50. d. Insurance expired, 680. e. Salaries accrued, 692. f. Depreciation of store equipment, 3,760. Required Complete the work sheet after entering the account names and balances onto the work sheet.arrow_forwardAt the end of April, the first month of operations, the following selected data were taken from the financial statements of Shelby Crawford, an attorney: In preparing the financial statements, adjustments for the following data were overlooked: Supplies used during April, 2,750. Unbilled fees earned at April 30, 23,700. Depreciation of equipment for April, 1,800. Accrued wages at April 30, 1,400. Instructions 1. Journalize the entries to record the omitted adjustments. 2. Determine the correct amount of net income for April and the total assets, liabilities, and owners equity at April 30. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment by setting up and completing a columnar table similar to the following. The adjustment for supplies used is presented as an example.arrow_forwardKelly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. 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: May 3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, 4,500. 5. Received cash from clients on account, 2,450. 9. Paid cash for a newspaper advertisement, 225. 13. Paid Office Station Co. for part of the debt incurred on April 5, 640. 15. Recorded services provided on account for the period May 115, 9,180. 16. Paid part-time receptionist for two weeks salary including the amount owed on April 30, 750. 17. Recorded cash from cash clients for fees earned during the period May 1-16, 8,360. Record the following transactions on Page 6 of the journal: 20. Purchased supplies on account, 735. 21. Recorded services provided on account for the period May 16-20,4,820. 25. Recorded cash from cash clients for fees earned for the period May 17- 23, 7,900. 27. Received cash from clients on account, 9,520. 28. Paid part-time receptionist for two weeks salary, 750. 30. Paid telephone bill for May, 260. 31. Paid electricity bill for May, 810. 31. Recorded cash from cash clients for fees earned for the period May 26-31, 3,300. 31. Recorded services provided on account for the remainder of May, 2,650. 31. Paid dividends, 10,500. Instructions 1. The cl1art of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 2018, 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, 2018, 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 retained earnings statement, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 8 of d1e journal. (Income Summary is account #34 in d1e 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_forward
- Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.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 (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_forwardThe trial balance of Hadden Company as of December 31, the end of its current fiscal year, is as follows: Here are the data for the adjustments. ab.Merchandise Inventory at December 31, 64,742.80. c.Store supplies inventory (on hand), 420.20. d.Insurance expired, 738. e.Salaries accrued, 684.50. f.Depreciation of store equipment, 3,620. Required Complete the work sheet after entering the account names and balances onto the work sheet.arrow_forward
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