Assets =Liabillties + Owners’Equity
Accounts Office Notes Accounts
Cash Receivable + Trucks +Equipment = Payable + Payable +Capital Stpck
$9,500 $13,900 $68,000 $3,800 $20,000 $10,200 $65,000
During a short period after December 31,rank Truck Rental had the following transaction:
1. Bought office equipment at a cost of$2,700. Paid cash.
2. Collected $4,000 of accounts receivable.
3. Paid $3,200 of accounts payable.
4. Borrowed $10,000 from a bank. Signed a note payable for that amount.
5. Purchased two trucks for $30,500. Paid $15,000 cash and signed a note payable for the balance.
6. Sold additional to investors for$75,00.
Instructions
1. List the December 31 balances of assets, liabilities, and owener’equity in tabular from as shown above.
2. Record the effects of each of the six transactions in the preceding tabular arrangement.
Show the totals for all columns after each transaction.