Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Financial balances for the car hire business of John Call, John's Limos, on 31 January 2022 are provided below in a table in accounting

image text in transcribed

Financial balances for the car hire business of John Call, John's Limos, on 31 January 2022 are provided below in a table in accounting equation form. Assets Cash at + Accounts + Office bank Liabilities +Motor +Fuel = Accounts + Loan receivable equipment vehicles supplies payable payable + Equity +John Call, capital $11,000 + $15,000 + $1,500 +$94,000+ 0 = $3,500 + $12,000+ $106,000 During February 2022, the following transactions were undertaken by John's Limos: 1. Collected $9,500 of the accounts receivable. 2. Purchased another vehicle for $58,000. Paid $15,000 in cash and signed a loan agreement for the balance. 3. Paid rent for the month of February, $1,200. 4. Billed customers for services performed, $12,500. 5. Fuel supplies purchased on credit, for $3,750. 6. John Call contributed $20,000 cash and office equipment valued at $5,000 to the business. Required: Record the effect of the above transactions in the table provided below. For each transaction identify the affected account and dollar amount and indicate if the account is increased or

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems

Authors: Ulric J. Gelinas, Richard B. Dull

10th edition

9781305176218, 113393594X, 1305176219, 978-1133935940

More Books

Students also viewed these Accounting questions