Journal, T accounts, and Trial balance to be completed

All entries occur in the month of September during 2014.

a. Ted starts his own business by investing $30,000 cash. (Sept. 1)

b. Ted pays $20,000 for a lump sum purchase of a building and equipment.The building is valued at $15,000 and the equipment is valued at $10,000. (Hint: Review lump sum purchases in your accounting text)(Sept. 2)

c. Ted buys $600 worth of shop supplies on credit.(Sept. 6)

d. Ted does a major repair for a national shipping company.The total repair is $4,800.The company pays $1,000 in cash at the time repairs are finished and promises to pay the remainder of the bill within thirty days. (Sept. 14)

e. Ted does extensive body work on Jim's auto, and sends Jim a bill for $1,700. (Sept. 17)

f. Ted receives Jim's check for $1,700. (Sept. 25)

g. Ted's mechanic earns $2,000 for a week's work. Ted pays him $1,800 after deducting $200 withholding taxes.(Hint: use a liability account for the withholding taxes) (Sept. 26)

h. Ted prepares financial statements at the end of the month.He makes an accrual for $400 for unpaid salaries.(Sept. 30)

M	D	Account Description	PR	Debit	Credit

Teds Garage

Trial Balance

September 30, 2014