The following amounts appeared on the transactions worksheet

The following amounts appeared on the transactions worksheet of Snider Truck Rentals Corporation on May 1, 2015. Liabilities Equit Assets = Cash PrepaidSuppliesEquipment Truck Expense Accounts CommonRetained avable Share 8,000 Earnings 1,600 400 3,000 7,000 4,000 The following transactions occurred during May a. Collected $5,000 cash for tool rental during the month b. Paid $500 rent expense c. Paid $1,500 cash to satisfy an account payable d. Paid $600 for a one-year insurance policy effective May 1 (record the asset as prepaid expense) e. Purchased used truck for $5,000 on credit f. Paid the following expenses: advertising, S300; salaries, $2,500; telephone, $150; truck operating, $550 g. Transferred the amount of May\'s insurance (S50) to insurance expense h. Estimated $200 of supplies to have been used during May Issued additional share capital and received $1,000 cash j. Paid S300 dividend in cash. Required: Record the above transactions on a transactions worksheet and calculate the total of each column at the end of Mav

Solution

TRANSACTION WORKSHEET Account Debit Credit a Cash $5,000 Tool rental $5,000 b Rent expense $500 Cash $500 c Accounts payable $1,500 Cash $1,500 d Prepaid expense $600 Cash $600 e Truck $5,000 Cash $5,000 f Advertising $300 Salaries $2,500 Telephone $150 Truck operating $550 Cash $3,500 g Insurance expense $50 Prepaid expense $50 h Supplies expense $200 Supplies $200 i Cash $1,000 Common shares $1,000 j Retained earning $300 Cash $300 TOTAL $17,650 $17,650 Ref CASH Debit Credit Beginning balance $1,600 a. Tool rental $5,000 b Rent expense $500 c Accounts payable $1,500 d Prepaid expense $600 f Advertising $300 f Salaries $2,500 f Telephone $150 f Truck operating $550 i Common shares $1,000 j Cash $300 Ref PREPAID EXPENSE Debit Credit d Cash $600 g Insurance expense $50 Ref SUPPLIES Debit Credit Beginning balance $400 h Supplies expense $200 Ref EQUIPMENT Debit Credit Beginning balance $3,000 Ref TRUCK Debit Credit Beginning balance $7,000 e Accounts payable $5,000 Ref ACCOUNTS PAYABLE Debit Credit Beginning balance $4,000 c Cash $1,500 e Truck $5,000 Ref COMMON SHARES Debit Credit Beginning balance $8,000 i Cash $1,000 Ref RETAINED EARNINGS Debit Credit Cash $300 Ref TOOL RENTAL Debit Credit a Cash $5,000 Ref RENT EXPENSES Debit Credit b Cash $500 Ref ADVERTISING EXPENSE Debit Credit f Cash $300 Ref SALARIES EXPENSE Debit Credit f Cash $2,500 Ref TELEPHONE EXPENSES Debit Credit f Cash $150 Ref TRUCK OPERATING EXPENSE Debit Credit f Cash $550 Ref INSURANCE EXPENSE Debit Credit g Prepaid expense $50 Ref SUPPLIES EXPENSE Debit Credit h Supplies $200