Question
he items making up the balance sheet of Phillips Truck Rental at December 31 are listed below in tabular form. Assets = Liabilities + Owners'
he items making up the balance sheet of Phillips Truck Rental at December 31 are listed below in tabular form.
Assets | = | Liabilities | + | Owners' Equity | |||||||||
Cash | + | Accounts Receivable | + | Office Equipment | + | Trucks | = | Notes Payable | + | Accounts Payable | + | Capital Stock | |
Balances | $9,500 | $13,900 | $3,800 | $68,000 | $20,000 | $10,200 | $65,000 | ||||||
During a short period after December 31, Phillips Truck Rental had the following transactions.
Bought office equipment at a cost of $3,200. Paid cash.
Collected $5,700 of accounts receivable.
Paid $2,900 of accounts payable.
Borrowed $10,000 from a bank. Signed a note payable for that amount.
Purchased two trucks for $29,000. Paid $14,000 cash and signed a note payable for the balance.
Sold additional stock to investors for $97,000.
Required: b. Record the effects of each of the six transactions in the preceding tabular arrangement.(Enter decreases to accounts as a negative.)
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