The following ransactions occured for London Eningeering: July 2 Paid utilities
ID: 2348410 • Letter: T
Question
The following ransactions occured for London Eningeering:July 2 Paid utilities expense for $400
5 Purchased equipment on account, $2,100
10 Performed service for a client on account, $2,000
12 Borrowed $7,000 cash, signing a note payable
19 Sold for $29,000 land that had cost the same amount
21 Purchased supplies for $800 and paid cash
27 Paid the liability from July 5
1. Open the following T-accounts with their July 1 balances: Cash, debit balance $4,000; Accounts receivable $0; Equipment $0; Land, debit balance $29,000; Supplies $0; Accounts payable $0; Notes payable $0; London, capital, credit balance $33,000; Service revenue $0; Utilities expense $0.
2. Post the transactions of the above table to the t-accounts. Use the dates as polting references. Start with July 2
3. Compare the July 31, 2012, balance for each account, and prove that total debits equal total credits by preparing a trial balance.
**only need number 3 done**
Explanation / Answer
Trial Balance ________| Debit___|Credit Asset Cash ___|$36,700 Acct. Receivable| $2,000 Equipment| $2,100 Supplies__| $800 Total ____| $41,600 Liabilities Account Payable|___| $2,100 Note Payable __|___| $ 7,000 Total__________|___| $9,100 Equity London, Capital |___| $33,000 Net Income____|___|1,000 (Revenue - Expenses) Total__________|___| $34,000 Total of Debit = $43,100 Total of Credit = $9,100+$ 34,000 = $43,100 Proof!
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