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Please help me find the error. it is not in balance TRANSACTIONS FOR MONT, PERIOD 2 Note that the net income for period T was
Please help me find the error. it is not in balance
TRANSACTIONS FOR MONT, PERIOD 2 Note that the net income for period T was added to Mont's Capital account. If you make a profit, then it is moved to your Capital at the end of the period, ang all revenues and expenses, as well as the Drawing account are zeroed out The balances for assets and liabilities are carried forward. I have boldfaced the beginning balance of each account Mont paid the rent for period 2 in cash, $1,500. 2 Mont purchased advertising on account, in the amount of $2,000 3 Ullities Expense was paid in cash. $600. 4 Mont purchased supplies on account, $4,000 5 Mont provided services to customers on account, $12,000 6 Mont paid cash on account in the amount of $6,000. 7 Cash was received from customers on account, $9,000. 8 Mont provided services to customers and received cash of $5,000. 9 Depreciation was recorded on the equipment, $250 10 Supplies used during the period amounted to $3,700. 11 Mont withdrew cash from the business, $1,000, for personal use. (Debit Depreciation Expense, credit Accumulated Depreciation.) (Debit Supplies Expense, credit Supplies.) ASSETS LIABILITIES INCREASE: DEBIT DECREASE: CREDIT INCREASE: CREDIT DECREASE: DEBIT OWNER'S EQUITY INCREASE: CREDIT DECREASE: DEBIT 01 CASH 201 ACCTS PAYABLE 302 MONT DRAWING 301 MONT CAPITAL ,5 600 6,000 1,000 2,000 4,000 13,000 9,000 5,000 202 NOTES PAYABLE 10.000 04 ACCTS RECEIVABLE 5, 12,000 OPERATIONS 501 RENT EXPENSE 401 SERVICE REVENUE 5,000 106 SUPPLIES 1,700 4,000 2,000 3,700 503 ADVERT. EXPENSE 2,000 110 EQUIPMENT 15,000 504 UTILITIES EXPENSE 112 ACC. DEPR. EQUIP 250 509 DEPR. EXPENSE 510 SUPPLIES EXPENSEStep by Step Solution
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