Problem 7 DATE ACCOUNT TITLE 1-Sep cash capital initial investment 2-Sep office equipment accounts payable purchased

office equipment on account -Sep office supplies cash paid office supplies !-Sep rent e"pense cash paid monthly rent 5-Sep small truc# cash notes payable purchased small truc#, paid in cash, %ave promissory note for bal& 6-Sep furniture accounts payable bou%ht furniture on account 7-Sep cash income amount received from customers $-Sep insurance e"pense cash paid insurance premium '-Sep accounts payable cash paid the office equipment 10-Sep accounts receivable income billed customer DEBIT CREDIT 12,000 12,000

650 650

225 225

00 00

12,000 !000 $000

2000 2000

500 500

600 600

650 650

1000 1000

CASH date debit date credit 1-Sep 12000 -Sep 225 7-Sep 500 !-Sep 00 5-Sep !000 $-Sep 600 '-Sep 650 +,+)* bal 12500 6725 5775

ACCOUNTS PAYABLE date debit date credit '-Sep 650 2-Sep 650 6-Sep 2000 ()* 2000

date

NOTES PAYABLE debit date -redit 5-Sep $,000

date

debit

CAPITAL date credit 1-Sep 12,000 FURNITURE date -redit 6-Sep 2,000

date OFFICE EQUIPMENT date debit date credit 2-Sep 650 -Sep 225 date date !-Sep debit RENT date 00 credit

debit

debit

INCOME date 7-Sep 10-Sep

credit 500 1000

TRUCK date debit date 5-Sep 12,000

credit

INSURANCE date debit date $-Sep 600

credit

ACCOUNTS RECEIVABLE date debit date -redit 10-Sep 1000

+./)* ()*)0-1 ,2 ()*)0-1S acco !t" credit debit cash bal 6,725 office equipment $75 rent 00 truc# 12,000 furniture 2000 insurance 600 accounts receive 1000 capital 12,000 accounts payable 2000 notes payable $000 income 1500 +,+)* 2 ,500 2 ,500

+./)* ()*)0-1 ,2 +,+)*S Acco !t" credit debit cash 12500 5775 office equipment $75 .ent 00 +ruc# 12,000 2urniture 2000 /nsurance 600 accounts receive 1000 -apital 12,000 accounts payable 2000 notes payable $000 income 1500 +,+)* 2',275 2',275