Chapter 3, Problem 3SEA

ANALYSIS OF T ACCOUNTS Richard Gibbs began a business called Richard’s Shoe Repair.

1. 1. Create T accounts for Cash; Supplies; Richard Gibbs, Capital; and Utilities Expense. Identify the following transactions by letter and place them on the proper side of the T accounts:
   1. (a) Invested cash in the business, $6,500.
   2. (b) Purchased supplies for cash, $700.
   3. (c) Paid utility bill, $2,700.
2. 2. Foot the T account for cash and enter the ending balance.