Listed below are the transactions for August 2014, the first month of operations of Abdi's Auto ervice owned and operated by Abdi Smith. Abdi invested $6,000 in the business, which consisted of $4,500 in cash plus equipment valued at $1,500. Paid rent of $500 for one month's rent. Hired a Mechanic who will be paid on commission. Purchases supplies on account for $240. Purchased a used van for $5,000, paying cash of $500 and signing an 1 year, 7% note payable for the balance. Completed services for clients. Of the services completed, $375 was paid in cash, and the remainder, $600 was on account. Paid telephone expense of $70. Received a utility bill for August of $110. Collected $350 of the accounts receivable balance. August 1 August 3 August 3 August 4 August 12 August 15 August 18 August 26 August 27 August 29 August 30 August 30 Billed clients for $450 in services. Paid an assistant $300 in wages. Abdi Smith withdrew $750 for personal use. Instructions a. Journalize the transactions. (Omit Explanations) b. Prepare a trial balance at August 31, 2014. Use T accounts as a ledger to get balances.
Listed below are the transactions for August 2014, the first month of operations of Abdi's Auto ervice owned and operated by Abdi Smith. Abdi invested $6,000 in the business, which consisted of $4,500 in cash plus equipment valued at $1,500. Paid rent of $500 for one month's rent. Hired a Mechanic who will be paid on commission. Purchases supplies on account for $240. Purchased a used van for $5,000, paying cash of $500 and signing an 1 year, 7% note payable for the balance. Completed services for clients. Of the services completed, $375 was paid in cash, and the remainder, $600 was on account. Paid telephone expense of $70. Received a utility bill for August of $110. Collected $350 of the accounts receivable balance. August 1 August 3 August 3 August 4 August 12 August 15 August 18 August 26 August 27 August 29 August 30 August 30 Billed clients for $450 in services. Paid an assistant $300 in wages. Abdi Smith withdrew $750 for personal use. Instructions a. Journalize the transactions. (Omit Explanations) b. Prepare a trial balance at August 31, 2014. Use T accounts as a ledger to get balances.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Listed below are the transactions for August 2014, the first month of operations of Abdi's Auto
Service owned and operated by Abdi Smith.
Abdi invested $6,000 in the business, which consisted of $4,500 in cash plus
equipment valued at $1,500.
Paid rent of $500 for one month's rent.
Hired a Mechanic who will be paid on commission.
Purchases supplies on account for $240.
Purchased a used van for $5,000, paying cash of $500 and signing an 1 year, 7%
note payable for the balance.
Completed services for clients. Of the services completed, $375 was paid in cash,
and the remainder, $600 was on account.
Paid telephone expense of $70.
Received a utility bill for August of $110.
Collected $350 of the accounts receivable balance.
Billed clients for $450 in services.
Paid an assistant $300 in wages.
Abdi Smith withdrew $750 for personal use.
August 1
August 3
August 3
August 4
August 12
August 15
August 18
August 26
August 27
August 29
August 30
August 30
Instructions
Journalize the transactions. (Omit Explanations)
b. Prepare a trial balance at August 31, 2014. Use T accounts as a ledger to get balances.
а.
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