4 Award: 7.50 points Four transactions for Automotive Maintenance and Repair Sho

Question

4 Award: 7.50 points Four transactions for Automotive Maintenance and Repair Shop that took place in November 2019 appear below DATE TRANSACTION Nov. 1 Ryan O'Malley invested $53,000 in cash plus tools with a fair market value of $1,800 to start the 2 Purchased equipment for $2,030 and supplies for $530 from Office Depot, Invoice 501; issuad 10 Performed services for Patricia Reed for $2,700, who paid $900 in cash with the balance due in 20 Purchased machinery for $3,800 from Craft Machinery, Inc., Invoice 709; issued Check 101 for Check 100 for $680 as a down payment with the balance due in 30 days. 30 days. $1,400 in cash as a down payment with the balance due in 30 days Record the transactions in the general journal and post them to the appropriate ledger accounts Analyze What liabilities does the business owe as of November 30?

Explanation / Answer

Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-Nov Cash    53,000.00 Tools      1,800.00     Ryan O'Malley, Capital    54,800.00 (To Record the capital introduced) 2-Nov Equipment      2,030.00 Office Supplies          530.00    Cash          680.00    Accounts Payable      1,880.00 (To record the equipment & office supplies purchased) 10-Nov Cash          900.00 Accounts Receivable      1,800.00    Fees Income      2,700.00 (To record the fees earned) 20-Nov Machinery      3,800.00    Cash      1,400.00    Accounts Payable      2,400.00 (To record the Machinery purchased) Answer 2. Cash Accounts Receivable Office Supplies Date Debit   Credit Balance Date Debit   Credit Balance Date Debit   Credit Balance 1-Nov      53,000.00          53,000.00 Dr. 10-Nov        1,800.00        1,800.00 Dr. 2-Nov             530.00             530.00 Dr. 2-Nov                680.00          52,320.00 Dr. 10-Nov            900.00          53,220.00 Dr. 20-Nov            1,400.00          51,820.00 Dr. Tools Machinery Equipment Date Debit   Credit Balance Date Debit   Credit Balance Date Debit   Credit Balance 1-Nov        1,800.00            1,800.00 Dr. 20-Nov        3,800.00        3,800.00 Dr. 2-Nov         2,030.00         2,030.00 Dr. Accounts Payable Ryan O'Malley, Capital Fees Income Date Debit   Credit Balance Date Debit   Credit Balance Date Debit   Credit Balance 2-Nov            1,880.00            1,880.00 Cr. 1-Nov      54,800.00      54,800.00 Cr. 10-Nov              2,700.00         2,700.00 Cr. 20-Nov            2,400.00            4,280.00 Cr. Answer 3. Liabilities as on Nov -30 Accounts Payable = $4,280

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