Pete Kequahtooway opened a yard care business, Pete's Yard Care, on March 1, 2014. The following activities
Question:
a. Pete Kequahtooway invested $4,300 cash and $15,000 of equipment into his business.
b. Purchased various supplies on account; $1,600.
c. Bought supplies on credit; $950.
d. Pete signed a $4,000 contract to do yard work beginning in May.
e. Did work for a client on account; $550.
f. Performed services for a customer on credit; $600.
g. Paid $200 for the supplies purchased in (c).
h. aid $250 for advertising in the local newspaper.
i. Collected the amount owed from the customer in (f).
Using the format provided below, show the effects of the activities listed in (a) through (i). For each transaction that affects equity, include a brief description beside it (owner investment, owner withdrawal, revenue, expense).
Step by Step Answer:
Fundamental Accounting Principles
ISBN: 978-0071051507
Volume I, 14th Canadian Edition
Authors: Larson Kermit, Tilly Jensen