TRANSACTIONS:
(1) On 02/1/2022, Yabba Dabba Do Snow Removal purchased a snow plow truck for $80,000 by borrowing $60,000 from Bedrock Bank and paying the remaining $20,000 in cash.
(2) On 02/1/2022, Yabba Dabba Do Snow Removal received a prepayment of $300 from a new client for snow removal services to be rendered during February and March 2022
(3) On 02/1/2022, Yabba Dabba Do Snow Removal paid monthly rent on its office space, which amounted to $1,600.
(4) On 02/09/2022 Yabba Dabba Do Snow Removal received a Dominion Energy invoice $1105 and was paid on the day received.
(5) On 02/15/2022, Yabba Dabba Do Snow Removal purchased office supplies for $3,500 using a line-of-credit that was established with the vendor.
(6) On 02/20/2022, Fred secured a 90-day note payable from Bedrock Bank, borrowing $30,000 in cash to cover operating expenses for the next three months.
(7)On 02/22/2022, Barney Rubble invested $50,000 of his personal funds into the company in exchange for additional common stock.
(8) On 02/24/2022, Yabba Dabba Do Snow Removal provided snow removal services to various clients, generating $12,500 in service revenue. The company received $5,000 in cash and expects to collect the remainder within 30 days.
(9) On 02/25/2022, Yabba Dabba Do Snow Removal paid its annual liability insurance premium of $5,500, covering the period from February 1, 2022, to January 31, 2023.
(10) On 02/28/2022, Yabba Dabba Do Snow Removal paid salaries to its employees, totaling $7,200, for the period of 02/01-02/21.
(11) On 02/28/2022, Yabba Dabba Do Snow Removal paid dividends of $500 to their investors.

(12) On 02/28/2022, Yabba Dabba Do Snow Removal was notified by their accountant that their year-to-date income tax liability is $1891. They will pay the tax liability on 4/15/2022.

NEXT:
A) Please prepare a Trial Balance FOR THE MONTH OF February. All T-accounts have a beginning balance of 0.

B) Using the final balances from the Trial Balance, write Yabba Dabba Do Snow Removal Accounting Equation.

Answer rating: 100% (QA)

SOLUTION A Trial Balance for the Month of February Debit Snow Plow Truck 80000 Office S... View the full answer