Group A Problem 2-1A Objective: To record business transactions in T accounts and prepare a trial balance On May 5, 20X1, Michael Ditch started a carpet cleaning business called Best Way Carpet Cleaners. He completed the following transactions during the month: (a) Michael transferred $15,500 from his personal savings account to a bank account for the business. (b) Michael invested a small truck, which he had owned personally, in the business. The value of the truck was $8,000. (c) Paid rent on a small office, $625. (d) Purchased office supplies for cash, $575. (e) Purchased equipment on account, $4,000. (f) Received cash for services performed, $150. (g) Performed services on credit, $350. (h) Purchased truck supplies on account, $125. (i) Paid salary of employee, $550. (j) Paid for repairs to truck, $225. (k) Received $200 for the services performed in Transaction (g). (1) Paid utilities, $315. (m) Paid creditor $75 on the purchase in Transaction (h). ling Business Transactions
Group A Problem 2-1A Objective: To record business transactions in T accounts and prepare a trial balance On May 5, 20X1, Michael Ditch started a carpet cleaning business called Best Way Carpet Cleaners. He completed the following transactions during the month: (a) Michael transferred $15,500 from his personal savings account to a bank account for the business. (b) Michael invested a small truck, which he had owned personally, in the business. The value of the truck was $8,000. (c) Paid rent on a small office, $625. (d) Purchased office supplies for cash, $575. (e) Purchased equipment on account, $4,000. (f) Received cash for services performed, $150. (g) Performed services on credit, $350. (h) Purchased truck supplies on account, $125. (i) Paid salary of employee, $550. (j) Paid for repairs to truck, $225. (k) Received $200 for the services performed in Transaction (g). (1) Paid utilities, $315. (m) Paid creditor $75 on the purchase in Transaction (h). ling Business Transactions
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Objective: To prepare a trial balance
Directions: Using your solution to Exercise 2-5, foot the accounts and prepare a trial
balance for Ray Ingram Realty as of June 30, 20X1.
Group A
Problem 2-1A
Objective: To record business transactions in T accounts and prepare a trial balance
On May 5, 20X1, Michael Ditch started a carpet cleaning business called Best Way
Carpet Cleaners. He completed the following transactions during the month:
(a) Michael transferred $15,500 from his personal savings account to a bank account
for the business.
(b) Michael invested a small truck, which he had owned personally, in the business.
The value of the truck was $8,000.
(c) Paid rent on a small office, $625.
(d) Purchased office supplies for cash, $575.
(e) Purchased equipment on account, $4,000.
(f) Received cash for services performed, $150.
(g) Performed services on credit, $350.
(h) Purchased truck supplies on account, $125.
(i) Paid salary of employee, $550.
(j) Paid for repairs to truck, $225.
(k) Received $200 for the services performed in Transaction (g).
(1) Paid utilities, $315.
(m) Paid creditor $75 on the purchase in Transaction (h).
Chapter 2 | Recording Business Transactions
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