Question

The chart of accounts for Annis’s Delivery Service is as follows:
Chart of Accounts
Assets Revenue
Cash 111 Delivery Fees Earned 411
Accounts Receivable 112 Expenses
Office Equipment 121 Delivery Trucks 122
Liabilities Gas Expense 512
Accounts Payable 211 Salaries Expense 513
Owner’s Equity Telephone Expense 514
Avery Annis, Capital 311
Avery Annis, Withdrawals 312
Annis’s Delivery Service completed the following transactions during the month of August:
Transaction A: Avery Annis invested $29,000 in the delivery service from her personal savings account.
Transaction B: Bought delivery trucks on account, $12,000.
Transaction C: Bought office equipment for cash, $600.
Transaction D: Paid advertising expense, $650.
Transaction E: Collected cash for delivery services rendered, $2,300.
Transaction F: Paid drivers’ salaries, $600.
Transaction G: Paid gas expense for trucks, $1,600.
Transaction H: Performed delivery services for a customer on account, $1,700.
Transaction I: Telephone expense due but unpaid, $200.
Transaction J: Received $250 as partial payment of transaction H.
Transaction K: Avery withdrew cash for personal use, $300.
As Avery’s newly hired accountant, you must perform the following:
1. The T accounts in the ledger have been set up for you. Record transactions in the T accounts. (Place the letter of the transaction next to the entry.)
2. Foot the T accounts where appropriate.
3. Prepare a trial balance at the end of August.
4. Prepare from the trial balance, in proper form,
(a) An income statement for the month of August,
(b) A statement of owner’s equity,
(c) A balance sheet as of August 31, 201X.



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  • CreatedApril 24, 2014
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