the chart of accounts of petes delivery services includes th

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

Solution

                                                                                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

               

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