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Create a Balance sheet from the information provided

Create a Balance sheet from the information provided

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Create a Balance sheet from the information provided

NARRATIVE OF TRANSACTIONS (Note: Unless stated otherwise, assume that all cash in and out is checking account related) Date Transaction No. Kyle opened two accounts at Pioneer State Bank, using 53,000 of his own money, H. deposited $2,500 in a checking account and $500 into savings. 7/1 Kyle borrowed $6,000 from his Aunt Martha and signed a note with 8% interest, Und. the terms of the note, he must make payments of $250 plus accrued interest on the fir day of each month. Kyle put $4,500 into his checking account and S1,500 into savings 7/2 7/3 Kyle purchased a 2006 Nissan pickup truck by writing a check for $4,820. 3. Kyle purchased insurance for the pickup truck at a cost of $150 per month. He pajd fo the month of July. 4 7/3 Kyle established a cell phone account for the business. The phone was free, and he paid $75 for the first month's service. 7/3 Kyle returned to the bank and applied for a VISA" card. He received a card with a $1,000 credit limit. 7/5 Kyle purchased a lawn mower and garden tools on account from Young's Home & Garden Center. The total cost was $1,080. (Debit Lawn Equipment.) 7/5 Kyle purchased $185 worth of gloves, stakes, trimmer lines, and other supplies at the local hardware store using his VISA card. 8. 7/6 9. Kyle paid $80 cash for gas and oil for his pickup truck and the mower. 7/6 A box of 500 additional checks arrived from the bank along with a memo that the $25 cost was charged to Kyle's checking account. He considered this an immaterial amount and charged it all to Office Supplies Expense. 7/7 Kyle had 1,500 advertising flyers printed to promote his new business. The flyers cost $225 and are considered advertising materials. He also purchased $90 of office supplies. Kyle used his VISA for all of these purchases. 11 7/7 12 One of Kyle's neighbors, Mr. Lee, is leaving town for six weeks. He paid Kyle $360 to mow his lawn each week and keep his hedges trimmed while he is away. 7/8 13 7/9 Kyle paid $75 cash to rent some equipment needed for the Abrams job (see transaction 15). 14 7/10 Kyle purchased another S60 of gas using his VISA card. 7/11 Kyle completed a landscaping and clean-up job for Mr. Abrams. He left Mr. Abrams a bill for $720. 15 16 7/13 Kyle charged another $140 in landscaping supplies at Young's Home & Garden Center. 6. eI6 Cmae Leaming". May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10 %D
Transcribed Image Text:NARRATIVE OF TRANSACTIONS (Note: Unless stated otherwise, assume that all cash in and out is checking account related) Date Transaction No. Kyle opened two accounts at Pioneer State Bank, using 53,000 of his own money, H. deposited $2,500 in a checking account and $500 into savings. 7/1 Kyle borrowed $6,000 from his Aunt Martha and signed a note with 8% interest, Und. the terms of the note, he must make payments of $250 plus accrued interest on the fir day of each month. Kyle put $4,500 into his checking account and S1,500 into savings 7/2 7/3 Kyle purchased a 2006 Nissan pickup truck by writing a check for $4,820. 3. Kyle purchased insurance for the pickup truck at a cost of $150 per month. He pajd fo the month of July. 4 7/3 Kyle established a cell phone account for the business. The phone was free, and he paid $75 for the first month's service. 7/3 Kyle returned to the bank and applied for a VISA" card. He received a card with a $1,000 credit limit. 7/5 Kyle purchased a lawn mower and garden tools on account from Young's Home & Garden Center. The total cost was $1,080. (Debit Lawn Equipment.) 7/5 Kyle purchased $185 worth of gloves, stakes, trimmer lines, and other supplies at the local hardware store using his VISA card. 8. 7/6 9. Kyle paid $80 cash for gas and oil for his pickup truck and the mower. 7/6 A box of 500 additional checks arrived from the bank along with a memo that the $25 cost was charged to Kyle's checking account. He considered this an immaterial amount and charged it all to Office Supplies Expense. 7/7 Kyle had 1,500 advertising flyers printed to promote his new business. The flyers cost $225 and are considered advertising materials. He also purchased $90 of office supplies. Kyle used his VISA for all of these purchases. 11 7/7 12 One of Kyle's neighbors, Mr. Lee, is leaving town for six weeks. He paid Kyle $360 to mow his lawn each week and keep his hedges trimmed while he is away. 7/8 13 7/9 Kyle paid $75 cash to rent some equipment needed for the Abrams job (see transaction 15). 14 7/10 Kyle purchased another S60 of gas using his VISA card. 7/11 Kyle completed a landscaping and clean-up job for Mr. Abrams. He left Mr. Abrams a bill for $720. 15 16 7/13 Kyle charged another $140 in landscaping supplies at Young's Home & Garden Center. 6. eI6 Cmae Leaming". May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10 %D
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