Chapter 1, Problem 4PB

In March, T. Carter established Carter Delivery Service. The account headings are presented below. Transactions completed during the month of March follow.

1. a. Carter deposited $25,000 in a bank account in the name of the business.
2. b. Bought a used truck from Degroot Motors for $15,140, paying $5,140 in cash and placing the remainder on account.
3. c. Bought equipment on account from Flemming Company, $3,450.
4. d. Paid the rent for the month, $1,000, Ck. No. 3001.
5. e. Sold services for cash for the first half of the month, $6,927.
6. f. Bought supplies for cash, $301, Ck. No. 3002.
7. g. Bought insurance for the truck for the year, $1,200, Ck. No. 3003.
8. h. Received and paid the bill for utilities, $349, Ck. No. 3004.
9. i. Received a bill for gas and oil for the truck, $218.
10. j. Sold services on account, $3,603.
11. k. Sold services for cash for the remainder of the month, $4,612.
12. l. Paid wages to the employees, $3,958, Ck. Nos. 3005–3007.
13. m. Carter withdrew cash for personal use, $1,250, Ck. No. 3008.

Required

1. 1. Record the transactions and the balance after each transaction
2. 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.