Financial balances for the car hire business of Monica Bass, People Limos, on 31 January 2022 are provided below in a table in accounting equation form.

Assets

=

Liabilities

+

Equity

Cash at bank

+

Accounts receivable

+

Office equipment

+

Motor vehicles

+

Fuel supplies

=

Accounts payable

+

Loan payable

+

Monica Bass, capital

$21,000

+

$15,000

+

$4,500

+

$94,000

+

0

=

$15,500

+

$13,000

+

$106,000

During February 2022, the following transactions were undertaken by People Limos:

1. Paid $12,000 of the accounts payable.
2. Paid for advertising and wages expenses in cash, for $7,250.
3. Monica withdrew $4,300 office equipment and $1,600 cash for personal use.
4. A customer hired a car for a month for $12,000, paying $3,500 in cash and signing an agreement to pay the remaining amount after 30 days.
5. Received $960 cash from a customer, who hired a car in January 2022.
6. Paid parking fines of $7,500.

Required:

Record the effect of the above transactions in the table provided below. For each transaction identify the affected account and dollar amount and indicate if the account is increased or decreased (using + or -)

Date February 2022 Cash at Bank Accounts Receivable Fuel SuppliesOffice Equipment Motor vehiclesAccounts Payable Loan payable Monica Bass, Capital

1.

2.

3.

4.

5.

6.

Answer rating: 100% (QA)

To answer the question we need to record the effect of the transactions in the table provided Here is the table with the affected accounts and dollar ... View the full answer