Four transactions for Automotive Maintenance and Repair Shop that took place in November 2019 appear below, along with the general ledger accounts used by the company.

INSTRUCTIONS

Record the transactions in the general journal and post them to the appropriate ledger accounts. Be sure to number the journal page 1 and to write the year at the top of the Date column.

DATE TRANSACTIONS
Nov. 1 Ryan O'Malley invested $60,000 in cash plus tools with a fair market value of $5,000 to start the business.
2 Purchased equipment for $3,500 and supplies for $700 from Office Depot, Invoice
501; issued Check 100 for $700 as a down payment with the balance due in 30 days.
10 Performed services for Patricia Reed for $3,200, who paid $1,000 in cash with the balance due in 30 days.
20 Purchased machinery for $4,000 from Craft Machinery, Inc., Invoice 709; issued Check 101 for $1,500 in cash as a down payment with the balance due in 30 days.
Analyze: What liabilities does the business owe as of November 30?

Transcribed Image Text:

Equipment Accounts Payable Ryan O'Malley, Capital Fees Income 151 202 301 401 101 Cash Accounts Receivable Office Supplies Tools Machinery 121 131 141