The items making up the balance sheet of Phillips Truck Rental at December 31 are listed below in tabular form.

Assets

=

Liabilities

+

Owners' Equity

Cash

+

Accounts Receivable

+

Office Equipment

+

Trucks

=

Notes Payable

+

Accounts Payable

+

Capital Stock

Balances

$9,500

$13,900

$3,800

$68,000

$20,000

$10,200

$65,000

During a short period after December 31, Phillips Truck Rental had the following transactions.

Bought office equipment at a cost of $3,200. Paid cash.

Collected $5,700 of accounts receivable.

Paid $2,900 of accounts payable.

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

Purchased two trucks for $29,000. Paid $14,000 cash and signed a note payable for the balance.

Sold additional stock to investors for $97,000.

Required:
b. Record the effects of each of the six transactions in the preceding tabular arrangement.(Enter decreases to accounts as a negative.)

	Assets							=	Liabilities			+	Owners’ Equity
	Cash	+	Accounts Receivable	+	Office Equipment	+	Trucks		Notes Payable	+	Accounts Payable		Capital Stock
December 31 balances	$9,500		$13,900		$3,800		$68,000		$20,000		$10,200		$65,000
1.
Balances	$9,500		$13,900		$3,800		$68,000		$20,000		$10,200		$65,000
2.
Balances	$9,500		$13,900		$3,800		$68,000		$20,000		$10,200		$65,000
3.
Balances	$9,500		$13,900		$3,800		$68,000		$20,000		$10,200		$65,000
4.
Balances	$9,500		$13,900		$3,800		$68,000		$20,000		$10,200		$65,000
5.
Balances	$9,500		$13,900		$3,800		$68,000		$20,000		$10,200		$65,000
6.
Balances	$9,500		$13,900		$3,800		$68,000		$20,000		$10,200		$65,000

Answer rating: 100% (QA)

Assets Accounts Cash Receivable December 31 balances 950... View the full answer