All transactions have been properly recorded for the month with the exception of

Question

All transactions have been properly recorded for the month with the exception of a vehicle purchase. Record the purchase of the vehicle for $12,250 cash on 12/31/14 showing: Effect on the accounting equation Journal entry T - Accounts Update Trial Balance shown to reflect the vehicle purchase. Using the updated trial balance, create: Single step income statement Statement of retained earnings Classified balance sheet Submit for grading: Transaction 1 Trial Balance Income Statement Statement of Retained Earnings Balance Sheet

Explanation / Answer

Hi

There are four parts of this question. I have answered first two parts, and for balance two parts, please put a separate question.

1. Effect of this Transaction Accounting Equiation Assest Cash + Accounts Receivable + Supplies + Vehicle + Equipment Balance $16,500 $7,345 $138 $0 $4,500 (A) -$12,250 $12,250 Balance $4,250 $7,345 $138 $12,250 $4,500 Journal Entry Date Account Debit Credit (a) Vehicle $12,250            Cash $12,250 T- Accounts Cash Balance $16,500 (A) $12,250 Balance $4,250 Vehicle Balance $0 (a) $12,250 Balance $12,250 2. Update Trial Balnce to show the effect of vehicle purchase A Cuppa Joe, Inc Trail Balance December 31, 2014 Account Title Debit Credit Cash $4,250 Accounts Receivable $7,345 Supplies $138 Vehicle $12,250 Equipment $4,500 Accumulated Depreciation $500 Accounts Payable $1,675 Bonds Payable (mature 12/31/19) $10,000 Common Stock $10,000 Retained Earnings $0 Sales Revenue $25,625 Interest Revenue $600 Operating Expense $18,452 Interest Expense $65 Income Tax Expense $1,400 Totals $48,400 $48,400

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---