PROBLEM $2\mathrm{.}4$A

lows in tabular form similar to the illustration of the accounting equation in Exhibit $2-11$:

An Alternate Problem on

Recording the Effects of

Transactions

Assets

Owners

Liabilities

Equity

During a short period'after December $31,$ Phillips Truck Rental had the following transactions:

Bought office equipment for cash at a cost of $$2,700.$

Collected $$4,000$ of accounts receivable.

Paid $$3,200$ of accounts payable.

Borrowed $$10,000$ from a bank. Signed a note payable for that amount.

Purchased two trucks for a total of $$30,500.$ Paid $$15,000$ cash and signed a note payable for

the balance.

Issued additional stock to investors for $$85,000.$

Instructions

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

shown.

b$.$ Record the effects of each of the slx trinsactions in the preceding tabular arrangement.

Show the totals for all columns after each transaction.