The Fast Delivery Service submitted the transactions given below. Analyze these

Question

The Fast Delivery Service submitted the transactions given below. Analyze these business transactions recorded in a T Account.

a. On October 16th, Fast Delivery Service mailed check no. 103 for $700 to pay the month's rent.
b. On October 18th, Beacon Advertising prepared an advertisement for Fast Delivery Service. Fast Delivery Service will pay Beacon's $75 fee later.
c. On October 20th, Fast Delivery Service billed City News $1,450 for delivery services.
d. On October 28th, Fast Delivery Service paid their $125 telephone bill with check no. 104.
e. On October 29th, Fast Delivery Service got check no. 105 ready for $600 to have the office repainted.
f. On October 31st, Joseph withdrew $500 cash for personal use through check no. 106.

Instructions:
1. In your notebook, prepare a T account for each transaction.
2. Analyze and record each of the business transactions in the appropriate T accounts.
3. Identify each transaction by number.
4. After recording all transactions, compute and record the account balance on the normal balance side of each T account.
5. Add the balances of the accounts with normal debit balances.
6. Add the balance of the accounts with normal credit balances.
7. Compare the two totals.

Explanation / Answer

Amount in $ No. Account Name Debit Credit 1 Rent Expenses 700 2 Advertisement Expenses 75 3 Accounts Payable 75 4 Revenue from Deliver Services 1450 5 Accounts Receivables 1450 6 Telephone Expenses 125 7 Prepaid Repairs & Maintainance 600 8 Withdrawal-Joseph 500 9 Bank 1925 Total 3450 3450 T-Ledger Accounts for Fast Ledger Services Rent Expenses Debit Credit Date Particular Amount Date Particular Amount Oct-16 Bank 700 Oct-31 Ending Balance (b/f) 700 700 700 Advertisement Expenses Debit Credit Date Particular Amount Date Particular Amount Oct-18 Accounts Payable-Beacon 75 Oct-31 Ending Balance (b/f) 75 75 75 Accounts Payable Debit Credit Date Particular Amount Date Particular Amount Oct-18 Advertisement Expenses 75 Oct-31 Ending Balance (b/f) 75 75 75 Revenue from Deliver Services Debit Credit Date Particular Amount Date Particular Amount Oct-20 Accounts Receivables (City News) 1450 Oct-31 Ending Balance (b/f) 1450 1450 1450 Accounts Receivables Debit Credit Date Particular Amount Date Particular Amount Oct-20 Revenue from Delivery Services 1450 Oct-31 Ending Balance (b/f) 1450 1450 1450 Telephone Expenses Debit Credit Date Particular Amount Date Particular Amount Oct-28 Bank 125 Oct-31 Ending Balance (b/f) 125 125 125 Prepaid Repair & Maintainance Debit Credit Date Particular Amount Date Particular Amount Oct-29 Bank 600 Oct-31 Ending Balance (b/f) 600 600 600 Withdrawl A/c- Joseph Debit Credit Date Particular Amount Date Particular Amount Oct-31 Bank 500 Oct-31 Ending Balance (b/f) 500 500 500 Bank Account Debit Credit Date Particular Amount Date Particular Amount Oct-16 Rent Expenses 700 Oct-28 Telephone Expenses 125 Oct-29 Prepaid repairs & Maintainance 600 Oct-31 Withdrawl A/c- Joseph 500 Oct-31 Ending Balance (b/f) 1925 1925 1925

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