Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1) Peter began the business by investing $20,000 cash. 2) Purchased Office Supplies for cash $ 200. 3) Purchased a computer system (Office Equipment) for
1) Peter began the business by investing $20,000 cash.
2) Purchased Office Supplies for cash $ 200.
3) Purchased a computer system (Office Equipment) for $ 2,500, paying $ 1,000
down and agreeing to pay the balance in 30 days.
4) Paid first months rent $ 2,000
5) Charged fees in cash to a customer $ 10,000.
6) Paid for an advertisement in the local newspaper, $ 500
7) Purchase a laser printer on account, $ 150.
8) Charged fees on account to a customer $ 7,000
9) Paid salaries to employees $ 1,500.
10) Paid utility bill for the month, $ 200.
11) Received $ 3,000 for repairing a network computer at Macys.
12) Purchased Office Furniture on account $ 6,000.
13) Collected $ 2,000 for the services performed in transaction 8.
14) Bought office furniture $ 5,000, he paid $ 1,000 cash and the due balance on
account.
15) Received cash from credit customers $ 4,000.
16) Withdrew $3,000 cash for personal expenses.
Required:
Trial Balance
Income Statement
Balance Sheet
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started