Record the following transactions in the journal and post them to the ledger. Pr

Question

Record the following transactions in the journal and post them to the ledger. Prepare a trial balance, and income statement, and owner equity statement and a balance sheet. Tessa's trucking began business on July 1 and had the following transactions. Tessa's trucking is a sole proprietorship (7-1)tessa taylor contributed $300,000 cash to tessa trucking "tt". The contribuation was made in cash. (7-2) tt punchased a trucking for $100,000cash (7-3)tt purchased supplies from home depot on account for $10,000 (7-5) tt moved aaron judges to new York and billed him $200,000 (7-7) tt paid the home depot account payable from (7-3)S10,000 in cash (7-8) aaron judse paid his account receivable from(7-5) $200,000) in cash (7-31) paid salary in cash$10,000 (7-31)paid rent in cash$20,000

Explanation / Answer

Journal

To Capital a/c

(Being capital contributed to Tessa's Trucking)

To Cash a/c

(Being truck purchased for cash)

To Home depot (accounts payable) a/c

(Being supplies from home depot on account)

To Sales a/c

(Being sold trucks on credit to Aaron judges)

To Cash a/c

(Being accounts payable settled)

To Aaron judges (accounts receivable) a/c

(Being accounts receivable settled)

To Cash a/c

(Being salary paid)

To cash

(Being rent paid in cash)

Ledgers

Cash a/c

Capital a/c

Purchases a/c

Sales a/c

Home depot a/c

Aaron judges a/c

Salary a/c

Rent a/c

Trial Balance

Income Statement

Balance Sheet

Owner Equity Statement

Date Particulars Debit($) Credit ($) 1/7 Cash a/c 300000

To Capital a/c

(Being capital contributed to Tessa's Trucking)

300000 2/7 Purchases a/c 100000

To Cash a/c

(Being truck purchased for cash)

100000 3/7 Purchases a/c 10000

To Home depot (accounts payable) a/c

(Being supplies from home depot on account)

10000 5/7 Aaron judges (accounts receivable) a/c 200000

To Sales a/c

(Being sold trucks on credit to Aaron judges)

200000 7/7 Home depot (accounts payable) a/c 10000

To Cash a/c

(Being accounts payable settled)

10000 8/7 Cash a/c 200000

To Aaron judges (accounts receivable) a/c

(Being accounts receivable settled)

200000 31/7 Salary a/c 10000

To Cash a/c

(Being salary paid)

10000 31-7 Rent a/c 20000

To cash

(Being rent paid in cash)

20000

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