The chart of accounts for Garret Alders Delivery Service is as follows. Adlers Delivery Service completed the
Question:
The chart of accounts for Garret Alder’s Delivery Service is as follows.
Adler’s Delivery Service completed the following transactions during the month of July:
A. Garret Adler invested $30,000 in the delivery service from his personal savings account.
B. Bought delivery trucks on account, $14,000.
C. Bought office equipment for cash, $1,500.
D. Paid advertising expense, $500.
E. Collected cash for delivery services rendered, $2,400.
F. Paid drivers’ salaries, $900.
G. Paid gas expense for trucks, $1,100.
H. Performed delivery services for a customer on account, $900.
I. Telephone expense due but unpaid, $100.
J. Received $600 as partial payment of Transaction H.
K. Garret withdrew cash for personal use, $250.
As Garret’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 July.
4. Prepare from the trial balance, in proper form,
(a) An income statement for the month of July
(b) A statement of owner’s equity
(c) A balance sheet as of July 31, 2023
Step by Step Answer:
College Accounting A Practical Approach
ISBN: 9780135222416
14th Canadian Edition
Authors: Jeffrey Slater, Debra Good