The chart of accounts of Avery?s Delivery Service is as follows: Avery?s Delivery Service completed the following

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The chart of accounts of Avery?s Delivery Service is as follows:

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Avery?s Delivery Service completed the following transactions during the month of October:

1. Audrey Avery invested $33,000 in the delivery service from her personal savings account.

2. Bought used delivery trucks on account, $13,000.

3. Bought office equipment for cash, $1,100.

4. Paid advertising expense, $250.

5. Collected cash for delivery services rendered, $3,500.

6. Paid drivers? salaries, $750.

7. Paid gas expense for trucks, $1,000.

8. Performed delivery services for a customer on account, $800.

9. Telephone expense due but unpaid, $50.

10. Received $100 as partial payment of transaction H.

11. Audrey withdrew cash for personal use, $700.

As Audrey?s newly hired accountant, you must perform the following:

1. Set up T accounts using the chart of accounts. Record transactions in the T accounts. (Place the letter of the transaction next to the entry.)

2. Foot the T accounts where appropriate and determine the ending balances.

3. Prepare a trial balance at the end of October.

4. Prepare from the trial balance, in proper form, (a) an income statement for the month of October, (b) a statement of owner?s equity, and (c) a balance sheet as of October 31, 201X.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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College Accounting A Practical Approach

ISBN: 9780134729312

14th Edition

Authors: Jeffrey Slater, Mike Deschamps

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