The financial balances for Steve’s Car Rentals on 31st May, 2019 are provided below in a table in accounting equation format. You are required to:

a draw up the table and list the balances for May b record the effects of each of the transactions listed. Show the total of each column after each transaction to ensure the accounting equation balances.

c calculate the profit or loss made by comparing revenues with expenses.

d prepare a balance sheet at 31st May.

Transactions for the month of May:
i Collected $2800 of accounts receivable.
ii Billed customers for services performed on credit $13 700.
iii Paid $1200 of accounts payable.
iv Purchased supplies worth $700 on credit.
v Purchased another motor vehicle for $21 000. Paid $1000 in cash and borrowed the rest as a loan.
vi Steve withdrew $650 in cash.
vii Received $3900 cash for services performed.
viii Paid wages $1500 and advertising $200 in cash.
ix Recorded supplies used of $600.
x Recorded interest on loan $235.

Transcribed Image Text:

Transaction Balances Asset Liabilities + Equity Cash at Accounts Office Bank 12 000 Receivable Equipment 13800 1 800 Motor Vehicle 93 700 Supplies Payable Accounts Loan Equity Payable 200 3000 13500 105000