Chapter $2$ Basic Financial Statements

During a short period after December $31,$ Maxx Trucking had the following transactions:

Bought office equipment at a cost of $$2,600.$ Paid cash.

Collected $$2,500$ of accounts receivable.

Paid $$2,000$ of accounts payable.

Borrowed $$5,000$ from a bank. Signed a note payable for that amount.

Purchased three trucks for $$60,000.$ Paid $$5,000$ cash and signed a note payable for the balance.

Sold additional stock to investors for $$25,000.$

Instructions

a$.$ List the December $31$ balances of assets, liabilities, and owners' equity in tabular form as

shown above.

b$.$ Record the effects of each of the six transactions in the tabular arrangement illustrated above.

Show the totals for all columns after each transaction.