Four transactions for Farmers Market and Repair Shop that took place in November 2016 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 Dennis Ortiz invested $55,000 in cash plus tools with a fair market value of $2,000 to start the business.
2 Purchased equipment for $2,050 and supplies for $550 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 Hazel Sneed for $2,900, 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 November30?

Transcribed Image Text:

Cash Accounts Receivable Office Supplies Tools Machinery Equipment Accounts Payable Dennis Ortiz, Capital Fees Income 151 202 301 401 101 121 131 141