accounting

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.

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  1. You might want to keep some of these accounting tutorials handy:

    http://search.yahoo.com/search?fr=mcafee&p=acounting+tutorials

    Sra

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  2. balance of the accounts with normal credit balance
    Joseph - capital $25,400
    Accounts payable $12,000
    Total $37,400

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