Use the PDFs found in the "Working Papers" folder in the main menu to complete the following activities. (Download the relevant PDFs and complete the following steps using the PDF templates.) Once complete, combine all PDFs into one file and upload it to Practice Question 3.3.1 below.

• (a) Jack Herta, the owner of Red River Moving & Storage, started his business on February 1, 20. Before recording these transactions in the journal, open the following ledger accounts, using the account numbers shown. All ledger accounts will be marked Sheet 1. (The Bank account will require two ledger sheets.) Bank, 101; A/R Edward Smith, 105; A/R Jack Swain, 106; Moving Van, 112; Office Equipment, 113; A/P Peckoff Equipment Co., 201; Bank Loan Payable, 220; Capital, J. Herta, 301; Moving Service Revenue, 401; Storage Fees Revenue, 402; Interest Revenue, 405; Gasoline Expense, 501; Maintenance Expense, 502; Rent Expense, 503; Utilities Expense, 504.
• (b) Here is a statement of the assets and liabilities that Herta invested in the business on February 1. Record a compound entry in the General Journal for this investment. Be sure to include a suitable explanation.

• (c) Continue the journal entries by recording the following transactions for the month of February. Each transaction requires a suitable explanation.

20 Feb. 2 Bought office equipment from Peckoff Equipment Co. on 30-day credit terms, $1,390. Purchase Invoice #2071. 3 A customer, Edward Smith, stored his furniture for one month. The storage fee is $180. Today Smith paid a $50 deposit. Balance will be paid in 20 days. Sales Invoice #1. 3 Paid National Agency for February rent, $2,000. Cheque #1. 5 Received $2,380 from William Butler for moving services. 10 Charged Jack Swain $1,975 for moving services, to be paid on March 2. Sales Invoice #2. 15 Paid Shell Canada for gasoline for our moving vans, $400. Cheque #2. 23 Received cheque from Edward Smith to cover balance of his account. 25 Received $3,250 from Philip Webster for moving services provided today. 26 Issued Cheque #3 for $150 to Frodos Garage for maintenance work on the van. 28The bank deposited $200 into our account for interest earned on a short-term investment. 28 Issued Cheque #4 for the electricity bill, $150.

• (d) Post the journal entries to the ledger accounts as illustrated in this chapter.
• (e) Prepare a trial balance, complete with an appropriate three-line heading.