The chart of accounts of Angelique’s Grocery Delivery Service is as follows:

Angelique’s Grocery Delivery Service completed the following transactions during the month of October:
A. Angelique Bujol invested $33,000 in the delivery service from her personal savings account.
B. Bought used delivery trucks on account, $13,000.
C. Bought office equipment for cash, $1,100.
D. Paid advertising expense, $250.
E. Collected cash for grocery delivery services rendered, $3,500.
F. Paid drivers’ salaries, $750.
G. Paid gas expense for trucks, $1,000.
H. Performed grocery delivery services for a customer on account, $800.
I. Telephone expense due but unpaid, $50.
J. Received $100 as partial payment of Transaction H.
K. Angelique withdrew cash for personal use, $700.
As Angelique’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 October.
4. Prepare from the trial balance, in proper form, 

(a) An income statement for the month of October, 

(b) A statement of owner’s equity, 

(c) A balance sheet as of October 31, 202X.

Transcribed Image Text:

Assets Cash 111 Accounts Receivable 112 Office Equipment 121 Delivery Trucks 122 Liabilities Chart of Accounts Accounts Payable 211 Owner's Equity Angelique Bujol, Capital 311 Angelique Bujol, Withdrawals 312 Revenue Grocery Delivery Fees Earned 411 Expenses Advertising Expense 511 Gas Expense 512 Salaries Expense 513 Telephone Expense 514