The chart of accounts for Anniss Delivery Service is as follows: Chart of Accounts AssetsRevenue Cash 111Delivery

Question:

The chart of accounts for Annis’s Delivery Service is as follows:

Chart of Accounts

AssetsRevenue

Cash 111Delivery Fees Earned 411

Accounts Receivable 112Expenses

Office Equipment 121Delivery Trucks 122

LiabilitiesGas Expense 512

Accounts Payable 211Salaries Expense 513

Owner’s EquityTelephone Expense 514

Avery Annis, Capital 311

Avery Annis, Withdrawals 312

Annis’s Delivery Service completed the following transactions during the month of August:

Transaction A: Avery Annis invested $29,000 in the delivery service from her personal savings account.

Transaction B: Bought delivery trucks on account, $12,000.

Transaction C: Bought office equipment for cash, $600.

Transaction D: Paid advertising expense, $650.

Transaction E: Collected cash for delivery services rendered, $2,300.

Transaction F: Paid drivers’ salaries, $600.

Transaction G: Paid gas expense for trucks, $1,600.

Transaction H: Performed delivery services for a customer on account, $1,700.

Transaction I: Telephone expense due but unpaid, $200.

Transaction J: Received $250 as partial payment of transaction H.

Transaction K: Avery withdrew cash for personal use, $300.

As Avery’s newly hired accountant, you must perform the following:

1. The T accounts in the ledger have been set up for you. Record transactions in the T accounts. (Place the letter of the transaction next to the entry.)

2. Foot the T accounts where appropriate.

3. Prepare a trial balance at the end of August.

4. Prepare from the trial balance, in proper form,

(a) An income statement for the month of August,

(b) A statement of owner’s equity,

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...