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 entries: date accounts titles debit $ credit $ 1-Jul Cash 300000 Contributed Capital 300000 2-Jul Equipment 100000 cash 100000 3-Jul Supplies 10000 AP 10000 5-Jul AR 200000 Service revenue 200000 7-Jul AP 10000 Cash 10000 8-Jul Cash 200000 AR 200000 31-Jul Salary expense 10000 Cash 10000 31-Jul Rent expense 20000 Cash 20000 T-ACCOUNTS / LEDGER : DEBIT AMOUNT $ CREDIT AMOUNT$ Cash a/c 1-Jul 300000 2-Jul 100000 8-Jul 200000 7-Jul 10000 31-Jul 10000 31-Jul 20000 c/b 360000 Capital contributed a/c 1-Jul 300000 Equipment a/c 2-Jul 100000 supplies a/c 3-Jul 10000 AP a/c 7-Jul 10000 3-Jul 10000 AR a/c 5-Jul 200000 8-Jul 200000 Service revenue a/c 5-Jul 200000 Salary expense a/c 31-Jul 10000 Rent expense a/c 31-Jul 20000 Trial Balance : Accounts Title Debit $ Credit $ Cash 360000 supplies 10000 Equipment 100000 Contributed Capital 300000 Service revenue 200000 Salary 10000 Rent 20000 Total 500000 500000 Income Statement : Service revenue 200000 Less: expenses: Salaries 10000 Rent 20000 Total expenses 30000 NI 170000 Owner Equity Statement: Contributed Capital 300000 Add: NI 170000 Owner's Equity 470000 Balance Sheet: Assets: Cash 360000 Supplies 10000 Current Assets 370000 Equipment 100000 Total Assets 470000 Liabilities and Owner Eq: Owner Eq 470000 Total Liabilities and Owner Eq: 470000

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