Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Financial balances for the car hire business of Nicole Johnson, Johnson Limos, on 31 March 2022 are provided below in a table in accounting
Financial balances for the car hire business of Nicole Johnson, Johnson Limos, on 31 March 2022 are provided below in a table in accounting equation form. Assets = Liabilities + Equity Cash at +Accounts + Office bank receivable equipment + Motor + Fuel Accounts + Loan vehicles supplies payable payable + Nicole Johnson, capital $30,000+ $21,000 +$3,800 + $74,000+ $2,200 = $19,600 + $20,000 + $91,400 During April 2022, the following transactions were undertaken by Johnson Limos: 1. Paid $15,400 of the accounts payable. 2. Paid for advertising and wages expenses in cash, for $10,200. 3. Nicole Johnson withdrew $2,300 office equipment and $8,700 cash for personal use. 4. A customer hired a car for a month for $15,000, paying $4,500 in cash and signing an agreement to pay the remaining amount after 30 days. 5. Received $3,600 cash from a customer, who hired a car in January 2022. 6. Purchased another motor vehicle for $35,000 and signed a loan agreement for the payment. 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 decreased (using (-10+
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