Preparing a balance sheet Refer to the T-accounts in Exercise 3-7. Compute ending balances and prepare Belle Company’s balance sheet. Assume the balance sheet is dated December 31, 2007. (Its December 31 Capital account balance is $29,280.)

Exercise 3-7:

Assume the following T-accounts reflect Belle Co.’s general ledger and that seven transactions a through g
are posted to them. Provide a short description of each transaction. Include the amounts in your descriptions.

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(c) (b) Cash 6.000 (b) 4,800 4.500 (c) 900 (f) 1,600 (g) 820 (f) Automobiles 12.000 Accounts Payable 1.600 (d) Office Supplies 900 300 Prepaid Insurance 4.800 Equipment D. Belle, Capital (a) Delivery Services Revenue (e) Gas and Oil Expense 820 (a) 7,600 (d) 9.700 10,000 25,600 4,500