Acct $110$

Chapter $3$ Homework Handout

$4$

Problem $2$

Henry Fox has started his own taxi service. During the first month, the following transactions occurred.

$($a$)$ Fox invested $$120,000$ cash in the business

$($b$)$ Cellular phone equipment was purchased with cash for $$1,800.$

$($c$)$ Fox purchased a taxi by paying $$3,000$ cash and $$27,000$ on account.

$($d$)$ Fox paid a cell phone bill for the first month, $$100.$

$($e$)A$$$500$ payment was made on account for the taxi.

$($f$)$ Fox received $$4,700$ from customers.

$($g$)$ At the end of the month, Fox owed Best Bookkeeping $$450$ for bookkeeping services received. Instructions

Record the above transactions in the $T$ accounts provided below. The first transaction, $($a$),$ has been completed for you.

Foot and balance the accounts.

Prove debits equal credits. To "prove" means to list the debit balances, add them up$,$ and list the credit balances and add them up$.$ The total must be equal. If it's not, first check your math $-$ did you add correctly? If your math is correct, review your debits and credits for each transaction.

Acct $110$

Chapter $3$ Homework Handout

$5$

$\backslash$table$[[$Cash$],[($a$)120,000,],[,],[,],[,],[,],[,],[,],[,]]$

$\backslash$table$[[$Taxi$],[,],[,],[,]]$

Prove Debits $=$ Credits

Debits $()$

Taxi Service Revenue

$\backslash$table$[[,],[,],[,]]$

Add up each column. Are the totals equal? They should be$.$