Question

Rachel White recently started her own shoe repair business. Transactions for the first month of operations (September 2018) are as follows.

1) Rachel invested $10,200 in cash in the business.

2) Paid two months of rent for $1,100 in advance.

3) Purchased store equipment worth $2,100 with cash.

4) Incurred business registration expenses, paid with $700 cash.

5) Paid travel expenses with $1,230 cash.

6) Received $2,690 cash from customers for shoe repair services performed during the month.

7) Provided shoe repair services worth $2,380 on the account.

8) Paid $1,360 to an assistant.

9) Borrowed $1,290 cash from the bank.

10) Received $720 in bills for electricity, water, and telephone, to be paid next month.

11) Rachel withdrew $750 cash for personal purposes.

12) Received $480 owing from a customer for service provided earlier this month.

Required

Record the above transactions on the T-account worksheet.

Do not enter dollar signs or commas in the input boxes.

Use the negative sign for negative values.

The T-Account fields are labeled by transaction number.

Record each transaction by entering the value into the corresponding T-account field.

Answer 1

working notes