On April 1. Adventures Travel Agency began operations. The following transactions were completed during the month. 1. Owner invested $24,000 in the business. 2. Obtained a bank loan for $7,000 by issuing a note payable. 3. Paid $11,000 cash to buy equipment. 4. Paid $1,200 cash for April office rent. Paid $1,450 for supplies. 6. Purchased $600 of advertising in the Daily Herald, on account. 7. Performed services for $18.000: cash of $2.000 was received from customers, and the balance of $16.000 was billed to customers on account. 8. Cash withdrawal of $400 by owner for personal use. 9. Paid the utility bill for the month. $2,000. 10. Paid Daily Herald the amount due in transaction (6). 11. Paid $40 of interest on the bank loan obtained in transaction (2). 12. Paid employees' salaries and wages, $6,400. 13. Received $12,000 cash from customers billed in transaction (7).
On April 1. Adventures Travel Agency began operations. The following transactions were completed during the month. 1. Owner invested $24,000 in the business. 2. Obtained a bank loan for $7,000 by issuing a note payable. 3. Paid $11,000 cash to buy equipment. 4. Paid $1,200 cash for April office rent. Paid $1,450 for supplies. 6. Purchased $600 of advertising in the Daily Herald, on account. 7. Performed services for $18.000: cash of $2.000 was received from customers, and the balance of $16.000 was billed to customers on account. 8. Cash withdrawal of $400 by owner for personal use. 9. Paid the utility bill for the month. $2,000. 10. Paid Daily Herald the amount due in transaction (6). 11. Paid $40 of interest on the bank loan obtained in transaction (2). 12. Paid employees' salaries and wages, $6,400. 13. Received $12,000 cash from customers billed in transaction (7).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On April 1. Adventures Travel Agency began operations. The following transactions were completed during the month.
1.
Owner invested $24,000 in the business.
2.
Obtained a bank loan for $7,000 by issuing a note payable.
3.
Paid $11,000 cash to buy equipment.
4.
Paid $1,200 cash for April office rent.
5.
Paid $1,450 for supplies.
6.
Purchased $600 of advertising in the Daily Herald, on account.
7.
Performed services for $18.000: cash of $2,000 was received from customers, and the balance of $16.000 was billed to
customers on account.
8.
Cash withdrawal of $400 by owner for personal use.
9.
Paid the utility bill for the month. $2,000.
10.
Paid Daily Herald the amount due in transaction (6).
11.
Paid $40 of interest on the bank loan obtained in transaction (2).
12.
Paid employees' salaries and wages, $6,400.
13.
Received $12,000 cash from customers billed in transaction (7).
Transcribed Image Text:No.
Account Titles and Explanation
Debit
Credit
1
2.
3.
4.
5.
5.
7.
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