N. R. Cooke started Cooke’s Spray Service on April 1 of this year. The account headings are presented below. During April, Cooke completed the transactions that follow

a. Invested cash in the business, $6,000.

b. Bought a truck from Domke Motors for $11,250, paying $1,200 in cash, with the remainder due in thirty days.

c. Bought equipment on account from Fancher Company, $1,800.

d. Paid rent for the month, $260.

e. Paid cash for insurance on truck for the year, $576.

f. Cash receipts for the first half of the month from cash customers, $2,175 (Income from Services).
g. Bought supplies for cash, $573.
h. Billed customers on account for services performed, $444.
i. Paid cash for utilities, $96.
j. Received bill for gas and oil used for the truck during the current month, $327 (Gas and Oil Expense).
k. Receipts for the remainder of the month from cash customers, $1,642.
l. Cooke withdrew cash for personal use, $1,050.
m. Paid wages to employees, $2,040.
Instructions 1. In the equation, complete the asset section and list the owner’s name above the term Capital.
2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenue, expenses, or a drawing.
3. Write the account totals from the left side of the equals sign and add them.
Write the account totals from the right side of the equals sign and add them.
If the two totals are not equal, first check the addition and subtraction. If you still cannot find the error, reanalyze each transaction.

Transcribed Image Text:

Assets Cash + Accts. + Supp. + Ppd. + Rec. Ins. + = Liabilities + Accounts Owner's Equity + Revenue - Expenses Payable Capital