Selected accounts from the general ledger of the Escobedo Shipping Service follow. Analyze the following transactions and
Question:
Selected accounts from the general ledger of the Escobedo Shipping Service follow. Analyze the following transactions and indicate by number what accounts should be debited and credited for each transaction.
101 Cash
111 Accounts Receivable
121 Supplies
131 Equipment
202 Accounts Payable
301 Rosa Escobedo, Capital
401 Fees Income
511 Rent Expense
514 Salaries Expense
517 Utilities Expense
TRANSACTIONS
1. Gave a cash refund of $875 to a customer because of a lost package. (The customer had previously paid in cash.)
2. Sent a check for $1,250 to the utility company to pay the monthly bill.
3. Provided services for $8,700 on credit.
4. Purchased new equipment for $6,400 and paid for it immediately by check.
5. Issued a check for $5,300 to pay a creditor on account.
6. Performed services for $16,775 in cash.
7. Collected $6,250 from credit customers.
8. The owner made an additional investment of $25,000 in cash.
9. Purchased supplies for $2,350 on credit.
10. Issued a check for $3,750 to pay the monthly rent.
Step by Step Answer:
College Accounting A Contemporary Approach
ISBN: 9781260780352
5th Edition
Authors: David Haddock, John Price, Michael Farina