The chart of accounts of Angeliques Grocery Delivery Service is as follows: Angeliques Grocery Delivery Service completed
Question:
The chart of accounts of Angelique’s Grocery Delivery Service is as follows:
Angelique’s Grocery Delivery Service completed the following transactions during the month of October:
A. Angelique Bujol invested $33,000 in the delivery service from her personal savings account.
B. Bought used delivery trucks on account, $13,000.
C. Bought office equipment for cash, $1,100.
D. Paid advertising expense, $250.
E. Collected cash for grocery delivery services rendered, $3,500.
F. Paid drivers’ salaries, $750.
G. Paid gas expense for trucks, $1,000.
H. Performed grocery delivery services for a customer on account, $800.
I. Telephone expense due but unpaid, $50.
J. Received $100 as partial payment of Transaction H.
K. Angelique withdrew cash for personal use, $700.
As Angelique’s newly hired accountant, you must perform the following:
1. Set up T accounts using the chart of accounts. Record transactions in the
T accounts. (Place the letter of the transaction next to the entry.)
2. Foot the T accounts where appropriate and determine the ending balances.
3. Prepare a trial balance at the end of October.
4. Prepare from the trial balance, in proper form,
(a) An income statement for the month of October,
(b) A statement of owner’s equity,
(c) A balance sheet as of October 31, 202X.
Step by Step Answer:
College Accounting A Practical Approach Chapters 1-25
ISBN: 9780137504282
15th Edition
Authors: Jeffrey Slater, Mike Deschamps