Question
In March, T. Carter established Carter Delivery Service. The account headings are presented below. Transactions completed during the month of March follow. Carter deposited $33,000
In March, T. Carter established Carter Delivery Service. The account headings are presented below. Transactions completed during the month of March follow.
Carter deposited $33,000 in a bank account in the name of the business.
Bought a used truck from Degroot Motors for $24,800, paying $6,400 in cash and placing the remainder on account.
Bought equipment on account from Flemming Company, $4,050.
Paid the rent for the month, $2,680, Ck. No. 3001 (Rent Expense).
Sold services for cash for the first half of the month, $7,006 (Service Income).
Bought supplies for cash, $360, Ck. No. 3002.
Bought insurance for the truck for the year, $1,480, Ck. No. 3003.
Received and paid the bill for utilities, $374, Ck. No. 3004 (Utilities Expense).
Received a bill for gas and oil for the truck, $235 (Gas and Oil Expense).
Sold services on account, $3,540 (Service Income).
Sold services for cash for the remainder of the month, $4,240 (Service Income).
Paid wages to the employees, $3,480, Ck. Nos. 30053007 (Wages Expense).
Carter withdrew cash for personal use, $2,050, Ck. No. 3008.
Required:
Record the transactions and the balance after each transaction.
After all transactions have been entered, enter the total assets and the total liabilities plus owner's equity in the entry boxes below the transactions. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction. If an amount box does not require an entry, leave it blank or enter "0". Enter all answers as positive amounts.
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