Question

a) On the first day of the month Javier opened a bank account in the name of the business; in which I deposit $ 25,000. b) $ 600 was paid in cash for the month's rent. c) A used truck was purchased for $ 8,000 in cash. d) Tools were purchased for $ 3,000 on credit at Home Depot. e) $ 150 was paid in cash for the use of electric power. f) $ 1,500 was paid in advance for a 2-year insurance for the truck. g) Customers paid the business $ 3,000 in cash for services received. h) Pay $ 700 of salary to an employee. i) Javier prepares a plot of land and the client makes a cash payment for $ 2,500 and he has to pay $ 1,000. j) Pay $ 35 of the telephone bill. k) Javier buys $ 300 in office equipment. Pay $ 100 in cash and take the remaining $ 200 on credit. l) Of the money owed by the client in letter i, the client pays $ 500. m) Javier pays an employee $ 850 salary. n) Javier pays $ 1,000 of the tools purchased in letter d. o) The business generated $ 2,000 more in income; of which he received $ 1,400 in cash and $ 600 remain receivable. p) The owner withdraws $ 500 from the business account for personal use. and make the T Accounts, Trial Balance, Income Statement, Retained Earnings Statement and Balance Sheet Statement.

Answer 1

Cash
(a)	$25000	(b)	$600
(g)	$3000	(c)	$8000
(i)	$2500	(e)	$150
(L)	$500	(f)	$1500
(o)	$1400	(h)	$700
		(j)	$35
		(k)	$100
		(m)	$850
		(n)	$1000
		(p)	$500
Ending balance	$18965

Withdrawals
(p)	$500
Ending balance	$500

Office equipment
(k)	$300
Ending balance	$300

Telephone expense
(j)	$35
Ending balance	$35

Salary expense
(h)	$700
(m)	$850
Ending balance	$1550

Prepaid Insurance
(f)	$1500
Ending balance	$1500

Service revenue
		(g)	$3000
		(i)	$3500
		(o)	$2000
Ending balance			$8500

Accounts receivable
(i)	$1000	(L)	$500
(o)	$600
Ending balance	$1100

Capital
		(a)	$25000
Ending balance			$25000

Rent Expense
(b)	$600
Ending balance	$600

Truck
(c)	$8000
Ending balance	$8000

Tools
(d)	$3000
Ending balance	$3000

Accounts payable
(n)	$1000	(d)	$3000
		(k)	$200
Ending balance			$2200

Electricity Power
(e)	$150
Ending balance	$150

Trial Balance
Accounts Title	Debit	Credit
Cash	$18965
Capital		$25000
Rent expense	$600
Truck	$8000
Accounts payable		$2200
Electric power expense	$150
Prepaid insurance	$1500
Service revenue		$8500
Salary expense	$1550
Telephone expense	$35
Office equipment	$300
Accounts receivable	$1100
Tools	$3000
Withdrawals	$500
	$35700	$35700

Income Statement
Service revenue	$8500
Less:
Rent expense	($600)
Electric power expense	($150)
Salary expense	($1550)
Telephone expense	($35)
Net income	$6165

Statement of Retained Earnings
Beginning balance	$0
+ Net income	$6165
- Dividends paid	$0
Ending balance	$6165

Balance Sheet
ASSETS;	$	$
Current Assets:
Cash	$18965
Accounts receivable	$1100
Prepaid insurance	$1500
Total current assets		$21565
Non-current Assets:
Tools	$3000
Truck	$8000
Office equipment	$300	$11300
Total assets		$32865
LIABILITIES
Current Liabilities;
Accounts payable	$2200
Total current liabilities		$2200
Equity;
Capital	$25000
- Withdrawal	($500)
Retained earnings	$6165	$30665
Total liabilities and equity		$32865