Opened up John\'s Services, as a sole proprietor During April he completed follo

Question

Opened up John's Services, as a sole proprietor During April he completed following transactions: April I John Invested $40,000 cash in the business. Purchased a lightly used pickup truck for $25,000. paying $6,000 cash and the bounce on account. Purchased supplies for $5.100 on account. Paid $2,400 cash on a 1 -year insurance policy effective April. Billed customers $6,400 for home repair and maintenance services. Paid $4,000 cash on amount owed on van and $2.100 on amount owed supplies. Paid $4,000 cash for employee salaries and wages. Collected $4,000 cash from customers billed on April 12. Billed customers an additional $8,000 for seines. Paid $400 for the monthly gasoline bill for the van. Withdrew $ 1.800 cash for personal use.

Explanation / Answer

Cash A/c Dr 40000     To Capital 40000 Truck Dr 25000    Cash 6000     To Creditor 19000 Supplies Dr 5100     To Accounts Payable 5100 Salaries & Wages Dr 4000    TO Cash 4000 Cash Dre 4000     To Accounts Receivable 4000 Gasoline Expense Dr 400    To Cash 400

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