The following transactions took place at Transport Truck Maintenance Company.

INSTRUCTIONS

For each transaction, set up T accounts from the following list: Cash; Shop Equipment; Store Equipment; Truck; Accounts Payable; Carmen Farris, Capital; and Carmen Farris, Drawing. Analyze each transaction. Record the effects of the transactions in the T accounts.

Analyze: 

Which transactions affect the Cash account?

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TRANSACTIONS 1. 2. 3. 4. 5. 6. 7. 8. Carmen Farris invested $90,000 cash in the business. Purchased shop equipment for $9,800 in cash. Bought store equipment for $9,600; payment is due in 30 days. Purchased a used truck for $22,075 in cash. Farris gave the firm her personal tools that have a fair market value of $12,400. Bought supplies for $5,600; payment is due in 30 days. Paid $1,200 in cash to apply to the amount owed for store equipment. Farris withdrew $7,500 in cash for personal expenses.