Wilhelm Kohl started a business in May 20-- called Kohl's Home Repair. Kohl hired a part-rime college student as an assistant. Kohl has decided to use the attached accounts for recording transactions: The following transactions occurred during May: (a) Invested cash in the business, $25,000. (b) Purchased a used van for cash, $6,000. (c) Purchased equipment on account, $4,000. (d) Received cash for services rendered, $7,500. (e) Paid cash on account owed from transaction (c), $2,300. (f) Paid rent for the month, $850. (g) Paid phone bill, $230. (h) Earned revenue on account, $4,500. (i) Purchased office supplies for cash, $160. (j) Paid wages to an assistant, $800. (k) Purchased a one-year insurance policy, $1, 100. (l) Received cash from services performed in transaction (h), $3,400). (m) Paid cash for gas and oil expense on the van, $155. (n) Purchased additional equipm
T ACCOUNTS AND
May 20-- called Kohl's Home Repair. Kohl hired a part-rime college
student as an assistant. Kohl has decided to use the attached accounts
for recording transactions:
The following transactions occurred during May:
(a) Invested cash in the business, $25,000.
(b) Purchased a used van for cash, $6,000.
(c) Purchased equipment on account, $4,000.
(d) Received cash for services rendered, $7,500.
(e) Paid cash on account owed from transaction (c), $2,300.
(f) Paid rent for the month, $850.
(g) Paid phone bill, $230.
(h) Earned revenue on account, $4,500.
(i) Purchased office supplies for cash, $160.
(j) Paid wages to an assistant, $800.
(k) Purchased a one-year insurance policy, $1, 100.
(l) Received cash from services performed in transaction (h),
$3,400).
(m) Paid cash for gas and oil expense on the van, $155.
(n) Purchased additional equipment for $4,200, paying $1,500 cash and spreading the remaining payments over the next 10 months.
(o) Earned service fees for the remainder of the month of $3,500:
$1,900 in cash and $1,600 on account.
(p) Withdrew cash at the end of the month, $2,900.
REQUIRED
1. Enter the transactions in T accounts, identifying each
transaction with its corresponding letter.
2. Foot and balance the accounts where necessary.
3. Prepare a trial balance as of May 31, 20-.
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