The chart of accounts of Mels Delivery Service includes the following: Cash, 111; Accounts Receivable,...

50.1K

Verified Solution

Question

Accounting

The chart of accounts of Mels Delivery Service includes the following: Cash, 111; Accounts Receivable, 112; Office Equipment, 121; Delivery Trucks, 122; Accounts Payable, 211; Mel Free, Capital, 311; Mel Free, Withdrawals, 312; Delivery Fees Earned, 411; Advertising Expense, 511; Gas Expense, 512; Salaries Expense, 513; and Telephone Expense, 514. The following transactions resulted for Mels Delivery Service during the month of July 2023: A. Mel invested $10,000 in the business from his personal savings account. B. Bought delivery truck on account, $17,000. C. Advertising bill received but unpaid, $700. D. Bought office equipment for cash, $1,200. E. Received cash for delivery services rendered, $15,000. F. Paid salaries expense, $3,000. G. Paid gas expense for company trucks, $1,250. H. Billed customers for delivery services rendered, $4,000. I. Paid telephone bill, $300. J. Received $3,000 as partial payment of Transaction H. K. Mel paid home telephone bill from company chequebook, $150. As Mels newly employed accountant, you must do the following: 1. Record transactions in the T accounts. (Place the letter of the transaction next to the entry.) 5 marks 2. Prepare from the trial balance, in proper form, (a) an income statement for the month of July, (b) a statement of owners equity, and (c) a balance sheet as of July 31, 2023. 5 marks

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students