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T-ACCTS FOLLOW THE DEBIT/CREDIT RULES-STAY OUT OF THE BLUE AREAS: 1. Max Daly invested $20,000 in the business, Daly Accounting. ASSET ASSET LIAB LIAB OE OE 2. Daly paid rent in the amount of $2,500 cash. 101 CASH 201 ACCTS PAYABLE 302 DALY DRAWING 1 DALY CAPITAL 0 3. Daly borrowed $10,000 cash from Bank of America, signing a note payable. 4. Daly purchased $3,000 of supplies on account. OPERATIONS 501 RENT EXPENSE 40 SERVICE REVENUE 5. Daly provided services to customers on account, $4,000, 104 ACCTS RECEIV. 202 NOTES PAYABLE 0 & Advertising was purchased on account, $1,000. 7. Equipment was purchased, 59,000. A cash down payment of $2,000 was paid, 503 ADVERT. EXPENSE and a note payable was signed in the amount of $7,000. 106 SUPPLIES 8. Daly withdrew $1,500 cash from the business for personal use. 9. Cash was collected from customers on account, $2.500. 510 SUPPLIES EXPENSE 110 EQUIPMENT 10. At the end of the month the supplies remaining were $1,800, so the supplies used up were $1.200. TRIAL BALANCE DEBIT CREDIT 101 CASH 104 ACCTS RECEIVABI 106 SUPPLIES 110 EQUIPMENT 201 ACCTS PAYABLE 202 NOTES PAYABLE 301 DALY CAPITAL 302 DALY DRAWING 401 SERVICE REVENUE 501 RENT EXPENSE 503 ADVERT. EXPENSE 510 SUPPLIES EXPENSI TOTALS In Balance? DR-CR? YES