Question

the chart of accounts of pete's delivery services includes the following: cash 111 accounts receivable 112 office equipment 121 delivery trucks 122 accounts payable 211 pete jean capital 311 pete jean withdrawals 312 delivery fees earned 411 advertising expense 511 gas expense 512 salaries expense 513 telephone expense 514 the following tranactions resulted for pete's delivery service during the month of march?

a. pete invested $40,000 in the business for his personal savings account

b. bought delivery trucks on account $25,000

c. advertising bill received but unpaid $800

d. bought office eqipment for cash $2,500

e. received cash for delivery services rendered $13,000

f. paid salaries expense $1,850

g. paid gas expense for company trucks $750

h. billed customers for delivery services rendered $5,500

i. paid telephone bill $400

j. received $1,600 as partial payment of transaction h

k. pete paid home telephone bill from company checkbook $88

As pete's newly employed account your task is to

1. set up T accounts in a ledger

2. record transactions in the T accounts (place the letter of the transaction next tot the entry)

3. foot the T accounts where appropriate

4. Prepare a trial balance at the end of March

5. Prepare from the trial balance, in proper form (a) an income statement for the month of March (b) a statement of owner's equity and (c) a balance sheet as of March 31

Answer 1

                                                                                CASH A/C

Date	Particulars	J.F	Amount(dr.)	Date	Particulars	J.F	Amount(cr)
	To Pete Jean Capital To delivery fees earned To delivery fees earned To balance b/d		40000 13000 1600		By delivery trucks By office equipment By salary expense By gas expense By telephone expense By   Pete Jean withdrawals By balance c/d		25000 2500 1850 750 400 88 24012
			54600				54600
			24012

                                                                                Pete Jean capital A/C

Date	Particulars	J.F	Amount(dr.)	Date	Particulars	J.F	Amount(cr)
	To balance c/d		40000		By cash By balance b/d		40000
			40000				40000
							40000

                                                                Delivery trucks A/C

Date	Particulars	J.F	Amount(dr.)	Date	Particulars	J.F	Amount(cr)
	To cash To balance b/d		25000		By balance c/d		25000
			25000				25000
			25000

                                                                Advertising expenses   a/c

Date	Particulars	J.F	Amount(dr.)	Date	Particulars	J.F	Amount(cr)
	To accounts payable To balance b/d		800		By balance c/d		800
			800				800
			800

                                                                Accounts payable

Date	Particulars	J.F	Amount(dr.)	Date	Particulars	J.F	Amount(cr)
	To balance c/d		800		By advertising expenses By balance b/d		800
			800				800
							800

                                                                Office equipment

Date	Particulars	J.F	Amount(dr.)	Date	Particulars	J.F	Amount(cr)
	To cash To balance b/d		2500		By balance c/d		2500
			2500				2500
			2500

                                                                Delivery fees earned

Date	Particulars	J.F	Amount(dr.)	Date	Particulars	J.F	Amount(cr)
	To bills receivable To balance c/d		5500 9100		By   cash By   cash By balance b/d		13000 1600
			14600
							14600
							9100

                                                                Salary expense

Date	Particulars	J.F	Amount(dr.)	Date	Particulars	J.F	Amount(cr)
	To cash		1850

                                                                Gas expense

Date	Particulars	J.F	Amount(dr.)	Date	Particulars	J.F	Amount(cr)
	To cash		750

                                                                Accounts receivable

Date	Particulars	J.F	Amount(dr.)	Date	Particulars	J.F	Amount(cr)
					By delivery fees earned		5500

                                                                Telephone expense

Date	Particulars	J.F	Amount(dr.)	Date	Particulars	J.F	Amount(cr)
	To cash		400

                                                                Pete jenes withdrawals

Date	Particulars	J.F	Amount(dr.)	Date	Particulars	J.F	Amount(cr)
	To cash		88

                                                                                Trial   balance

Sl. no	Ledger accounts	l.f	debit	credit
1 2 3 4 5 6 7 8 9 10 11 12	Cash Pete jean capital Delivery   trucks Advertisement expense Accounts payable Office equipment Delivery fees Salary expense Gas expense Accounts receivable Telephone expense Pete jeans withdrawals	111 312 122 511 211 121 411 513 512 112 514 312	54600 - 25000 800 - 2500 5500 1850 750 - 400 88	30588 40000 - - 800 - 14600 - - 5500 -
			91488	91488

                                                Income statement

particulars	amount	particulars	amount
To advertisement expense To salary expense To gas expense To telephone expense To net profit	800 1850 750 400 5300	by delivery fees earned	9100
			9100
	9100

                                                                Statement of owner’s equity

Capital Add:   net income	40000 5300
	45300
less: net drawing total	88
	45212