Question

Hunter Thompson, an owner, made an additional investment of $21,000 in cash. A firm purchased equipment for $10,000 in cash. A firm sold some surplus office furniture for $1,700 in cash. A firm purchased a computer for $3,700, to be paid in 60 days. A firm purchased office equipment for $11,200 on credit. The amount is due in 60 days. Nancy Fowler, owner of Fowler Travel Agency, withdrew $6,000 of her original cash investment. A firm bought a delivery truck for $37,000 on credit; payment is due in 90 days. A firm issued a check for $3,500 to a supplier in partial payment of an open account balance.

Answer 1

Step-by-step explanation:

The Ledger account is shown below:-

1. An additional investment = $21,000 in cash.

Cash (Dr balance) Hunter Thompson, Capital (Cr balance)

$21,000 $21,000

2. Equipment purchased = $10,000 in cash.

Equipment (Dr balance) Cash (Cr balance)

$10,000 $10,000

3. Office furniture sold = $1,700 in cash.

Office furniture (Cr balance) Cash (Dr balance)

$1,700 $1,700

4. Computer purchased for $3,700 to be paid in 60 days

Office Equipment (Dr balance) Accounts Payable (Cr balance)

$3,700 $3,700

5. Purchased office equipment $11,200 in due amount 60 days.

Office Equipment (Dr balance) Accounts Payable (Cr balance)

$11,200 $11,200

6. Nancy withdraw cash $6,000 from her original cash investment.

Cash (Cr. balance) Nancy Fowler, Withdraws (Dr. balance)

$6,000 $6,000

7. Truck bought $37,000 with the due payment 90 days

Delivery truck (Dr balance) Accounts Payable (Cr balance)

$37,000 $37,000

8. firm issued check to a supplier $3,500 partial payment of an open account balance

Accounts Payable Cash (Cr balance)

$3,500 $3,500