The Fast Delivery Service submitted the transactions given below. Analyze these business transactions.

a. On October 1st, Joseph took $25,000 from personal savings and deposited the amount to open a business checking account in the name of Fast Delivery Service.
b. On October 2nd, Joseph took two telephones valued at $200 each from his home and transferred them to the business as office equipment.
c. On October 4th, Fast Delivery Service issued check no. 101 for $3,000 to buy a computer system.
d. On October 9th, Fast Delivery Service bought a used truck on account from North Shore Auto for $12,000.

Instructions:
1. In your notebook, prepare a T account for each account.
2. Analyze and record each of the following business transactions in the appropriate T accounts.
3. Identify each transaction by number.
4. After recording all transactions, compute and record the account balance on the normal balance side of each T account.
5. Add the balances of the accounts with normal debit balances.
6. Add the balance of the accounts with normal credit balance.
7. Compare the two totals.

balance of the accounts with normal credit balance

Joseph - capital $25,400
Accounts payable $12,000
Total $37,400

To analyze the given business transactions for Fast Delivery Service, we need to follow the instructions step by step:

Step 1: Prepare a T-account for each account in your notebook. A T-account has a debit (left) side and a credit (right) side. Label the accounts as follows:
- Business Checking Account
- Personal Savings Account
- Office Equipment
- Computer System
- Accounts Payable
- Cash

Step 2: Analyze and record each of the given business transactions in the appropriate T-accounts. Let's go through each transaction:

a. On October 1st, Joseph took $25,000 from personal savings and deposited the amount to open a business checking account in the name of Fast Delivery Service.
- Personal Savings Account (Debit): $25,000
- Business Checking Account (Credit): $25,000

b. On October 2nd, Joseph took two telephones valued at $200 each from his home and transferred them to the business as office equipment.
- Office Equipment (Debit): $400
- Personal Savings Account (Credit): $400

c. On October 4th, Fast Delivery Service issued check no. 101 for $3,000 to buy a computer system.
- Computer System (Debit): $3,000
- Business Checking Account (Credit): $3,000

d. On October 9th, Fast Delivery Service bought a used truck on account from North Shore Auto for $12,000.
- Office Equipment (Debit): $12,000
- Accounts Payable (Credit): $12,000

Step 3: Identify each transaction by number as shown above.

Step 4: After recording all transactions, compute and record the account balance on the normal balance side of each T-account. The normal balance side depends on the nature of the account. For example, assets have a normal debit balance, while liabilities and equity have a normal credit balance.

Step 5: Add the balances of the accounts with normal debit balances. In this case, add the balances of Business Checking Account, Office Equipment, and Cash.

Step 6: Add the balances of the accounts with normal credit balances. In this case, add the balances of Personal Savings Account, Computer System, and Accounts Payable.

Step 7: Compare the two totals. The total of the debit balances and the total of the credit balances should be equal. If they are not equal, there might be an error in recording the transactions.

By following these steps, you should be able to analyze the given business transactions for Fast Delivery Service.