The transactions of Valley Ice Skating Rink, a newly formed business, have been recorded by the owner, Casey Gaunt, in informally constructed T accounts. Gaunt asks you to transfer this information into ledger accounts of the three-column run¬

ning balance type. He will prepare journal entries from memoranda and documents in his possession. The T accounts are shown below, with the related debits and credits representing each transaction identified by a letter as well as by date. [In transaction

(e) on September 15, a motor originally included in the earlier purchase of equipment was sold on credit to a friend of Casey Gaunt’s at its cost of $400.]

Instructions a Transfer the information shown by the T accounts to ledger accounts of the three-column running balance type.
b Prepare a trial balance at September 30 from the ledger accounts completed in part a.

Transcribed Image Text:

Cash 1 9/1 9/25 (1) 300 (a) 25,000 9/3 9/29 (b) 5,000 (g) 15,000 Notes Payable 30 9/3 (b) 85,000 Accounts Receivable Accounts Payable 31 9/15 (e) 400 9/25 (s) 300 9/29 (g) 15,000 9/6 (c) 20,000 9/12 (d) 1,200 Land 20 Casey Gaunt, Capital 50 9/3 (b) 65,000 9/1 (a) 25,000 Building 9/3 (b) 25,000 22 22 Equipment 25 9/6 (c) 20,000 9/15 (e) 400 9/12 (d) 1,200